Havila Kystruten AS

Havila Kystruten AS: Signing of exclusivity agreement and term sheet for new debt financing

Reference is made to the stock exchange announcement dated 27 June 2023

regarding Havila Kystruten AS' equity private placement and debt financing.

The Company has today signed a term sheet with a large global private credit

fund for a three-year EUR 305 million facility to cover the refinancing of all

four vessels. The facility carries a cash interest of 3-months EURIBOR plus

6.00 per cent and PIK interest of 3.50 per cent. Subject to reaching certain

financial milestones, the total interest may be reduced to EURIBOR plus 7.75 per

cent, The facility will amortize with EUR 50 million at a price of 107 per cent

of par after 15 months with a guaranteed settlement by Havila Holding AS (the

Company's largest shareholder owning 60.42%) through the issuance of a new

unsecured debt instrument . The remaining amount matures after 3 years at a

price of 106 per cent.

The debt facility remains subject to, inter alia, credit approval and final

documentation, as well as the extension of the settlement date for the existing

debt by the UK court, which the Company has applied for, and necessary

consequential and logical updates to the licenses already granted to the

Company.

Together with the debt financing, the Company will be seeking to raise EUR 85

million of new capital in order to be fully funded for its refinancing and

delivery of the remaining vessels from the yard. The Company is discussing with

prospective investors to meet this remaining financing requirement, hereunder

the possibility to raise capital through an equity placement. Havila Holding

will contribute a significant part of such an amount.

The overall financing solution secures an LTV below 60% and positions the

Company well for the next coming years.

As soon as all formalities are in place, the Company will take delivery of the

two remaining vessels at the yard. Hence, the Company can inform that Havila

Pollux will start operations from Bergen on August 12(th), and Havila Polaris on

August 17(th).

Arctic Securities AS, Fearnley Securities AS and Nordea Bank Abp, filial i Norge

are acting as Managers for the contemplated refinancing of the Company.

Contacts:

Chief Executive Officer Bent Martini +47 905 99 650

Chief Financial Officer Arne Johan Dale, +47 909 87 706

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