Camanchaca plant. (Photo: Camanchaca)
Camanchaca signs financing contract for USD 165 million
CHILE
Wednesday, November 29, 2017, 02:00 (GMT + 9)
Compañía Pesquera Camanchaca informed that it has signed a rescheduling agreement and financing, bridge bond and guarantee commitment with DNB Bank ASA, Cooperative Rabobank UA and Banco Santander Chile SA, which will make it possible to reschedule liabilities amounting to USD 165 million.
The agreement, signed by Camanchaca and its subsidiary Salmones Camanchaca SA, considers three financing stages or lines.
The first stage - stage A - is for USD 25 million and has a payment term of two years with four semi-annual and equal amortizations, unless a placement of shares or equivalent takes place, in which case it is prepaid with the funds thus obtained.
The second stage - stage B - is for USD 40 million and for a term of five years, with two and a half year grace period and six equal semi-annual amortizations between month 30 and month 60.
The third stage - stage C - is for USD 100 million for the subsidiary Salmones Camanchaca SA, with a term of five years, three year grace period, two amortizations of 10 per cent each at the end of the third and fourth years, and a final payment at the end of the fifth year of the remaining 80 per cent.
The firm’s general manager, Ricardo García, explained that as regards stages A and B, "the subsidiary became guarantor of the Camanchaca’s liabilities, unless a placement of shares of the subsidiary is made, in which case it would stop being so. Regarding stage C, Camanchaca became the guarantor of the subsidiary's liabilities, unless the aforementioned placement of shares is made, in which case it would also stop being so."
The guarantees associated with these financing lines consist of the pledge of shares held by Camanchaca of its subsidiaries Camanchaca Pesca Sur SA, Camanchaca Cultivos Sur SA and of those shares of the subsidiary that are not the object of the placement.
Likewise, García pointed out that the most representative and significant assets of the respective debtors remain under guarantee.
Finally, he explained that Camanchaca and the subsidiary must maintain a level of net indebtedness that does not exceed 40 per cent of its assets, a maximum ratio between EBITDA and net debt less than four times; in addition to the obligations of doing and not doing and other habitual provisions in these instruments.
As Camanchaca’s general manager indicated, "the agreed conditions do not consider restrictions on investments, cash sweeping or production limitations for the company and its subsidiary."
Camanchaca’s managers estimate that the agreement reached with the banks will not affect the financial statements beyond the amortization schedule shift, which now reaches 2022, and that it will improve the cash flow profile for the next five years.
Related articles:
- Camanchaca negotiates and 'polishes' USD 165 million refinancing proposal
- Camanchaca assesses placement of subsidiary on Norwegian Stock Exchange
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