REG - Harland & Wolff - Update re. New Credit Facility

Harland & Wolff groupAnnouncement

29/12/2023 07:00

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RNS Number : 1207Y  Harland & Wolff Group Holdings PLC  29 December 2023

This announcement contains inside information.

 

29 December 2023

 

 

 

Harland & Wolff Group Holdings plc

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

 

£200 Million Credit Facility & Associated

UK Export Finance Export Development Guarantee

 

Harland & Wolff Group Holdings plc (AIM: HARL), the UK quoted company
focused on strategic infrastructure projects and physical asset lifecycle
management, reports that it has sought and obtained permission from Ministers
to advance negotiations in relation to the proposed £200 million guaranteed
loan facility with UK Export Finance (UKEF) under its Export Development
Guarantee Scheme ("EDG Scheme").

 

In order to ensure that the proposed loan facility is compliant with the
relevant rules where UKEF was to provide a 100% guarantee to UK commercial
lending banks ("Banks"), UKEF will now appoint an independent third party to
ascertain an appropriate premium over SONIA. This process will commence in
January 2024.

 

Following ministerial approval to progress negotiations, the Company will now
firm up the Bank syndicate and appoint a lead arranger. In parallel, the
Company will commence necessary documentation in relation to the credit and
guarantee agreements as well as the security package that will be offered. It
is likely that the security package will entail providing the Banks with a
first charge on substantially all the assets of the Company, similar to what
has been provided to Riverstone Credit Partners in March 2022. This
transaction will be subject to the agreement of Ministers, final approval of
the financing terms, and Investment Committee approvals of the Banks.

 

The Company also reports that no warrants are expected to be issued to the
Banks or UKEF.

 

Through a combination of cash currently held on the balance sheet and expected
cash flows in 2024 generated from existing contracts, the Directors consider
that the Company has sufficient funds to meet its working capital requirements
until the new loan facility is completed.

 

A further detailed announcement will be made by the Company in the event that
this credit facility and associated guarantee is placed, and the transaction
has been executed.

 

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)

 Arun Raman, Chief Finance Officer                                         media@harland-wolff.com (mailto:media@harland-wolff.com)

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

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

 Michael Johnson (Sales)

 Liberum Capital Limited (Joint Broker)                                    +44 (0)20 3100 2000

 Nicholas How / Edward Mansfield

 Radnor Capital Partners (Investor Relations)                              +44 (0) 20 3897 1838

 Neville Harris / Joshua Cryer

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.

 

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