Havila Shipping ASA: Information on the development of the company's debt

Information on the development of the company's debt

Reference is made to previous statements, most recently in the interim report for the first quarter of 2024, related to restructuring of the company's debt.

By the end of September, the lenders must report to the company whether the lenders for the individual loan choose

Settlement as of 31.12.24 or
Extend the agreement by one year until 31.12.25

An important element in lender's assessment of the alternatives is the earnings of each vessel in the period from 01.07.23 to 30.06.24. The result is now available and entails a possible transfer to interest-bearing debt (tranche A) from non-interest-bearing debt (tranche B) for those vessels where the lender chooses settlement as of 31.12.24.

Tranche A – Interest bearing debt

According to the agreement, the nominal value of interest-bearing debt for the vessels owned by the company will amount to NOK 489 million at the end of the restructuring period on 31.12.24 before transfer from B to A tranches.

If all lenders choose settlement as of 31.12.24, the earnings in the mentioned 12-month period will result in NOK 180 million being transferred from non-interest-bearing debt (tranche B) to interest-bearing debt (tranche A).

Interest-bearing debt will then amount to NOK 669 million as of 31.12.24.

The company has signed term sheet for refinancing. The company can also choose alternative solutions.

Tranche B – Non-interest-bearing debt

Non-interest-bearing debt (tranche B) will amount to NOK 1,319 million after payment on due date 30.09.24 whereof NOK 588 million is linked to sold ships.

The debt will also be serviced as of 31.12.24 based on earnings in the third quarter of 2024. The final amount of non-interest-bearing debt is per now unknown.

If all lenders choose settlement as of 31.12.24, non-interest-bearing debt (tranche B) will be reduced by NOK 180 million when this amount has been transferred to interest-bearing debt (tranche A).

The remaining amount will, regardless of the size of the amount, be converted into shares corresponding to 47% of the shares in the company. Havila Holding AS will then convert its liquidity loan and maintain its ownership stake of 50.96% of the company.

Possible extension of the agreement

Should all lenders extend the agreement by one year, the interest-bearing debt will be adjusted downwards from NOK 489 million to NOK 410 million during 2025 without any upward adjustment.

Non-interest-bearing debt (tranche B) will be repaid based on earnings. The remaining non-interest-bearing debt will be converted into shares in the company as of 31.12.25.

The ownership will be reduced from 47% corresponding to the relative reduction in non-interest-bearing debt (tranche B) through 2025.

A lender can choose different solutions for each ship. In that event, the share allocation for conversion of non-interest-bearing debt (tranche B) will be made as of 31.12.24,
and shares will be issued to lenders who have chosen it. For the other lenders, the conversion will be postponed until 31.12.25.

Havila Holding AS will in this case convert its liquidity loan in separate transactions in order to maintain its stake in the company.

Contacts:
Chief Executive Officer Njål Sævik, +47 909 35 722
Chief Financial Officer Arne Johan Dale, +47 909 87 706

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act