Norwegian vessel owner and operator Eidesvik Offshore has struck a refinancing deal with banks for the extension of the final maturities of debt facilities from the end of 2022 to the end of 2023. The extension is subject to Eidesvik meeting certain financial and operational triggers.
The Oslo-listed firm said the documentation is in the works and the final deal should be in place during September, which will see Eidesvik make a repayment of around NOK309m on outstanding debt with no further fixed installments in 2021.
Fixed installments in 2022 will be reduced from around NOK311m to NOK106m, while in 2023, Eidesvik agreed to fixed installments of a total of around NOK71m. Interest has not been changed and will be paid as normal throughout the period.
In addition to fixed installments, a “cash sweep” mechanism has been agreed upon. This will be used for further repayment of the debt if the cash balance within the individual debt facility exceeds certain levels.
Jan Fredrik Meling, CEO and president, commented: “The agreed terms significantly strengthen our financial position. With our existing backlog and strong operations, we are confident that we will meet the financial triggers required to automatically extend the final maturities to end 2023.”