Net interest-bearing debt will increase from NOK 6.4 billion (EUR 620 million) at the end of the third quarter to NOK 18.6 billion (EUR 1.8 billion) in the new merged company.
For the acquisition financing itself, the Frøya-based Norwegian salmon farmer has secured NOK 11.5 billion (EUR 1.1 billion) in bridge financing with a duration of 24 months, in addition to an increase in the existing credit facility of NOK three billion (EUR 300 million). According to the plan, this will ensure that SalMar is left with NOK six billion (EUR 600 million) in available liquidity after the acquisition.
SalMar’s new CEO, Frode Arntsen, tells Finansavisen that the company has a good dialogue with the banks and that the financing “is sufficient”.
There are several reasons why SalMar has incurred so much debt:
“Quite simply, NTS took on a lot of debt to buy NRS, in addition you have debt in NRS, SalmoNor and Frøy. The consolidated debt is quite significant. The salmon tax means that the cash flow generated in NRS and SalmoNor is now 40 per cent lower, which means that the serviceability of debt decreases”, analyst Christian Nordby at Kepler Cheuvreux previously told Finansavisen.
SalMar has been hit hard by the tax proposal from the government. The share price has more than halved in three months.