Bonheur ASA — M&A Activity 2020

Jul 15, 2020

Acquisition of cruise vessels and fleet optimization

Wholly owned subsidiaries of Bonheur ASA have today entered into agreements with HAL Nederland NV (part of the Carnival Corpora on Group) for the acquisi on of two cruise vessels to be operated by Fred. Olsen Cruise Lines Ltd., UK, which isalso a wholly owned subsidiary of Bonheur.

The vessels, which will be renamed MS Bole-e and MS Borealis, were built in 2000 and 1997 and weigh GT 62,735 and GT 61,849, respec vely. They each have acapacity of approx. 1,400 available lower berths. Thisacquisi on forms part of an op miza on of the Fred. Olsen Cruise Lines' fleet composi on and with a high yieldingcabin mix and large publicspaces, these vessels will enhance Fred. Olsen Cruise Lines' earnings capabili es once opera ons can safely resume. Delivery is expected to take place in the UK duringSeptember 2020.

Considering divestment of two vessels within the current fleet, such op miza on of Fred. Olsen Cruise Lines' fleet composi on will imply Bonheur itself contribu ngapprox. GBP 7million in financingto Fred. Olsen Cruise Lines. The remaining financingrequirements, which shall also coverany re-brandingcosts, layup costsand pre-opera ngcosts will i.a. be covered byasellercredit of GBP 22.3million and opera ngcash flow in rela on to the restart of cruise opera ons.

The sellercredit will have a 5 years tenor with 3 years of zero amor za on and subsequentannual instalments of GBP 7.43million ata 2.5% fixed interest cost,an interest rate which reflects the nego ated parameters of the transac on.

As to when to resume cruise opera ons, Fred. Olsen Cruise Lines will con nue to take advice and follow guidelines from relevantauthori es, includingthe UK Governmentand Public Health England as well as overseas policies. A decision on safely resumingcruising will correspondingly be taken in close harmoniza on with such ins tu ons.

By op mizingits fleetand opera ons, Fred. Olsen Cruise Lines is posi oningitself to emerge from the current cruise pause in astrongerand more resilient posi on.