REG - Harland & Wolff - Proposed Debt Refinancing

Harland & Wolff groupAnnouncement

09/11/2022 07:00

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RNS Number : 7541F  Harland & Wolff Group Holdings PLC  09 November 2022

9 November 2022

 

Harland & Wolff Group Holdings plc

("Harland & Wolff" or the "Company")

Proposed Debt Refinancing

 

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, is pleased to announce that it has entered into an exclusive term
sheet with Astra Asset Management UK (Astra) Limited for the proposed
refinancing of the Group's credit lines.

Currently, the proposed committed facility within the executed term sheet is
£70 million and both parties will be working together to increase this to
£100 million in due course. The transaction would entail the refinancing of
the Group's existing debt with Riverstone Capital Partners (RCP) in full and
provide for additional financing towards capital expenditure and Group working
capital requirements.

The new credit facility will be for a period of two years with three annual
extension options.  As such, when financial close is reached, it is expected
that this new facility will be on better economic terms than the existing debt
facility but contingent on any further movements of the Bank of England's Base
Rate and other market movements prior to financial close. Importantly, this
facility will provide enhanced financial headroom and flexibility to the
Company to grow its business and fulfil its expected current and future
contractual obligations to its clients. As part of this transaction, Astra
will be issued 15 million warrants over new ordinary shares in the Company at
an exercise price of 6.2385 pence per share, which is the 14-day volume
weighted average price at the time of execution of the term sheet. The
warrants will expire in 60 months from the date of issue, which will be the
date of financial close with annual extensions to the expiry date should the
credit facility be extended on an annual basis.

Financial close is expected within four to six weeks. The Company will make
further announcements at financial close.

John Wood Chief Executive Officer commented:

"We are delighted to be entering into this new facility and partnership with
Astra. The enhanced financing will be incredibly useful to meet our capital
expenditure and working capital obligations towards some key and large
contracts that we have been negotiating over the last 18 months, due to come
to fruition in the next couple of quarters.

As a UK based private debt lender, Astra are intimately aware of local
dynamics of shipbuilding, levelling-up and energy security and we look forward
to closing this transaction with Astra within the agreed timescales."

This announcement contains inside information.

 

For further information, please visit www.harland-wolff.com
(http://www.harland-wolff.com/)  or contact:

 

 Harland & Wolff Group Holdings plc                                        +44 (0)20 3900 2122

 John Wood, Chief Executive Officer                                        investor@harland-wolff.com (mailto:investor@harland-wolff.com)

 Seena Shah, Head of Marketing & Communications                            media@harland-wolff.com (mailto:media@harland-wolff.com)

 Cenkos Securities plc (Nominated Adviser & Broker)                        +44 (0)20 7397 8900

 Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance)

 Michael Johnson (Sales)

 

 

 

About Harland & Wolff

Harland & Wolff is a multisite fabrication company, operating in the
maritime and offshore industry through five markets: commercial, cruise and
ferry, defence, energy and renewables and six services: technical services,
fabrication and construction, decommissioning, repair and maintenance,
in-service support and conversion.

 

Its Belfast yard is one of Europe's largest heavy engineering facilities,
with deep water access, two of Europe's largest drydocks, ample quayside and
vast fabrication halls. As a result of the acquisition of Harland & Wolff
(Appledore) in August 2020, the company has been able to capitalise on
opportunities at both ends of the ship-repair and shipbuilding markets where
there will be significant demand.

 

In February 2021, the company acquired the assets of two Scottish-based yards
along the east and west coasts. Now known as Harland & Wolff (Methil) and
Harland & Wolff (Arnish), these facilities will focus on fabrication work
within the renewables, energy and defence sectors.

 

In addition to Harland & Wolff, it owns the Islandmagee gas storage
project, which is expected to provide 25% of the UK's natural gas storage
capacity and to benefit the Northern Irish economy as a whole when completed.

 

About Astra Asset Management UK Limited

 

Founded in 2012, Astra Asset Management has grown to become one of Europe's
leading specialist credit asset managers. Astra manages a number of investment
products within credit markets. The team focuses on non-vanilla credit
strategies backed by mortgages and corporate debt across asset classes in
Europe and the US.

 

 

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