The credit line is an extension of the company’s existing loan agreement, on the same terms.
The revolving credit facility will be drawn upon to redeem the company’s NOK 305 million bond loan, due on 25 May 2013, and repay NOK 46 million in outstanding accumulated guarantee fees to Aker ASA. Aker ASA is paid a fee for issuing a guarantee for Aker BioMarine’s bond loan, in accordance with an agreement approved by Aker BioMarine’s general assembly on 8 April 2010.
Aker BioMarine will also redeem a short-term loan, with incurred interests, of NOK 141 million in total to Aker ASA. The remaining proceeds of the loan will be used to finance the company’s investment in a new production facility for Superba(TM) krill oil, and for general corporate purposes.
As part of the refinancing, Aker ASA will extend a NOK 305 million guarantee for Aker BioMarine’s new loan facility. The amount guaranteed is equivalent to the guarantee issued by Aker ASA for Aker BioMarine’s bond loan, to be repaid by 25 May. The guarantee will expire upon Aker BioMarine reaching a net interest bearing debt to EBITDA ratio inferior to 3.5x for two consecutive quarters.