Havila Voyages has bolstered its financial standing by completing the refinancing of a €50 million secured bond loan, which will now improve its liquidity and balance sheet.
- The Norwegian cruise line secured a €56 million loan from Havila Holding AS to refinance the bond, also establishing a NOK 200 million credit facility for seasonal liquidity management.
- By successfully resolving a legal dispute in London, Havila took delivery of its two ships, Havila Polaris and Havila Pollux, despite facing delays due to licensing issues and geopolitical tensions.
- Chief Executive Bent Martini highlighted the strategic financial adjustments amidst high borrowing costs, aiming for sustainable operations and improved earnings along the Norwegian coast.
- Positive trends in bookings continue, with occupancy rates showing notable improvement, reflecting enhanced market awareness and customer satisfaction.
Havila Voyages has undertaken significant steps to strengthen its financial position by completing the refinancing of a €50 million secured bond loan. This action, intended to enhance its liquidity and balance sheet, involved securing a €56 million loan from Havila Holding AS. In addition, a revolving credit facility of NOK 200 million has been established. This facility aims to provide financial flexibility to manage seasonal fluctuations in liquidity effectively.
The refinancing was crucial for Havila after a High Court ruling allowed the company to resolve its protracted legal battle with Russian leasing firms affected by European sanctions. This resolution enabled Havila to take delivery of its vessels, Havila Polaris and Havila Pollux, despite earlier setbacks due to licensing issues and Turkey’s earthquake.
Bent Martini, Havila’s Chief Executive, elucidated the decision set against the backdrop of elevated borrowing costs and the challenges associated with the previous lender, complicated by imposed sanctions. The chief executive articulated that while expensive, the refinancing paves the way for more stable and sustainable financial structuring in the long term.
Operationally, the focus now shifts to optimising the performance of the four newly acquired coastal route ships, with a strategy of capitalising on substantial ship values and earnings potentials. This strategic initiative is anticipated to lower costs incrementally over time, aligning with the company’s broader financial objectives.
Havila Voyages reports continued positive trends in bookings. The occupancy rates have been promising, escalating from 60% in Q4 2023 to 68% in Q1 2024. This upward trend in booking figures is seen as a testament to the growing recognition of the brand in the marketplace and the satisfactory experiences reported by returning patrons.
Havila Voyages’ strategic refinancing efforts and positive booking trends position it for sustained growth and operational success.
