Listed Bonds

In February 2013, Bakkafrost issued unsecured bonds on the Norwegian market at a total nominal value of NOK 500,000,000 with a 5-year tenor. The bonds were listed on the market on 3 May 2013. The interest rate is NIBOR 3m plus a margin of 4.15 %. The bonds are measured at fair value at initial recognition.

Following the issuance of the bonds, Bakkafrost has entered into a currency/interest rate swap, hedging the exchange rate and switched the interest rate from NIBOR 3m to CIBOR 3m. Bakkafrost has entered the swap due to its exposure to DKK, as a large part of the income and costs are in DKK and EUR.

The bonds have no official credit rating.

 

Financial Covenants:

Equity Ratio of minimum the highest of 35 percent and the highest Equity Ratio requirement in the senior bank loan agreements applicable at any time.

Leverage Ratio of maximum the lowest of 4.0 times and the lowest Leverage Ratio requirement in the senior bank loan agreements applicable at any time.

Bank Financing

In December 2015, Bakkafrost entered a new bank loan. The bank loan is a multicurrency revolving credit facility of DKK 850 million for a period of five years. In addition to the DKK 850 million credit facility, the new agreement has an accordion increase option of maximum DKK 750 million.

The loan facility is secured in both the Group’s property, plants and other material, and fixed assets as well as stock, farming licences and insurance policies.

The interest payable is the reference interest rate for the respective currencies plus a margin, which is calculated based on the Group’s leverage ratio.

 

Financial Covenants:

Equity ratio shall not be less than 35 percent.

Leverage ratio shall not exceed 4.5. The Company has the right to have leverage ratio up to 6.0 for three quarters.