Grieg signs £268m finance deal with DNB, Nordea

Grieg Seafood has announced the signing of a NOK 3.2 billion (£268m) five-year senior secured sustainability-linked facilities agreement with DNB Bank ASA and Nordea Bank, to refinance its existing bank facilities.

The agreement provides for a NOK 750m (£62m) term loan, a €75m (£63m) term loan, a NOK 1,500m (£125m) revolving credit facility. In addition, Grieg Seafood has access to a NOK 200m (£16.6m) overdraft facility.

The sole financial covenant governing the facilities is a minimum equity ratio of 31%, excluding IFRS 16 effects.

Grieg Seafood CEO Andreas Kvame said: “The new debt structure will secure the long-term financing of our ongoing operations and at the same time reduce the company’s financial costs.

The new facilities will provide the flexibility for us to execute our strategic priorities and to deliver on our long-term ambition of sustainable and profitable growth, while maintaining a robust capital structure in line with our communicated targets”.

Grieg, which completed the sale of its Shetland assets to Scottish Sea farms for £164m in December, is due to report its final quarter results for 2021 next week.

The company has already said it plans to concentrate on its Norwegian and Canadian businesses.

It has also committed itself to aim for global growth, cost improvements repositioning the company in the market through downstream partnership.

However, along with other salmon companies, it has come up against Canadian Government opposition to its open net farming operations in British Columbia.

It was also forced to cull a million salmon in Newfoundland last year following an ISA (infectious salmon anaemia) scare.