Refinancing to support Nordic Halibut’s growth plans
Nordic Halibut (NOHAL), a Norwegian producer of sushi-grade halibut, reported that it has entered into a Term Sheet for a NOK 100 million (US$11.6 million) overdraft facility agreement with a Norwegian bank. The money will allow Nordic Halibut to pay its previous long term debt and overdraft facility, and enable the company pursue its production goals as well as expansion plans which include the construction of a new land-based facility.
“We are pleased to add a flexible instrument to our capital structure, whilst adhering to our strategy of moderate leverage during our growth-journey towards 9,000 tons HOG (head on gutted) within 2030,” said Edvard Henden, chief executive office of NOHAL.
The new overdraft facility will provide NOHAL financial headroom to realize its growth-plan, according to a press release from the company.
Meanwhile, the company also said it remains on track with its land-based facility project.
Earlier, NOHAL signed an agreement with landowners in order to secures the location for its new land-based facility to be built at Torjulvågen in Tingvoll, Møre & Romsdal.
The land-based facility is critical to NOHAL’s strategy because it will enable to company to reach it goal of producing 9,000 tons of halibut by 2030. Once fully operational, the facility will have a production capacity of 1.25 million juveniles per year.
Tingvoll and Torjulvågen “represent the perfect location” for the new facility, according to NOHAL. Torjulvågen has access to clean water with stable temperature well suited for halibut farming. It is also located in NOHAL’s core production hub in Nordmøre.
“Proximity between land-based and sea-based production units enables optimal resource allocation across our value chain,” according to Henden.