Hurtigruten Group completes its comprehensive Recapitalisation Transaction

Today, 23 February 2024, Hurtigruten Group AS (the “Company”, and together with its subsidiaries, the “Group”) successfully implemented its previously announced comprehensive recapitalisation transaction (see announcement here) and SUN Exchange transaction (see announcement here) (together the “Recapitalisation Transaction”).

The Recapitalisation Transaction provides the Group with:

• an injection of EUR 185 million of new liquidity into the Group through a combination of near-term interest waivers and a new super senior secured opco facility with the Company in a principal amount of EUR 205 million (the “Super Senior Opco Facility”);

• deleveraging the operating group by reinstating the existing senior facilities into (i) a new senior secured opco facility with the Company in a principal amount of EUR 345 million (the “Senior Opco Facility” and together with the Super Senior Opco Facility, the “New Senior Facilities”), and (ii) a new secured PIK holdco facility with the new holding company of the Company Hurtigruten Newco AS (the “Parent”), in a principal amount of approx. EUR 670 million (the “New Holdco Facility”);

• amending and restating the existing EUR 50 million 11.00% senior unsecured bonds issued by the Company into senior secured bonds in a principal amount of EUR 50 million (plus accrued unpaid interest and any consent fees) issued by the Parent, such that 60% of such bonds rank pari passu with the New Holdco Facility and a portion of the Restructured Shareholder Facilities (as defined below) (but with the first EUR 150 million of proceeds available to the New HoldCo Facility and a portion of the Restructured Shareholder Facilities not subject to dilution) and the remaining 40% subordinated to the New Holdco Facility and a portion of the Restructured Shareholder Facilities in accordance with an agreed payment waterfall (the “Reinstated SUNs”); and

• restructuring the existing shareholder facilities in an aggregate principal amount of approx. EUR 150 million, all of which will be subordinated to the New Senior Facilities and approx. EUR 55 million of which will be subordinated to the New Holdco Facility and Reinstated SUNs, and will have an extended maturity profile to provide further support for the business (the “Restructured Shareholder Facilities”), (the New Senior Facilities, the New Holdco Facility, the Reinstated SUNs and the Restructured Shareholder Facilities together the “New Facilities”).

Through implementation of the Recapitalisation Transaction, the Group has significantly strengthened its balance sheet and is well positioned to explore refinancing options of the senior secured notes due in 2025. Furthermore, in accordance with the terms of the New Facilities, the Group will work to deliver on its strategic objectives, including the separation of the business into HX, the world’s largest specialist expeditions fleet, and Hurtigruten, the prestigious Norwegian cruise business.   

For further information, please contact:

Investor Relations team:  [email protected]

This information is subject to the disclosure requirements pursuant to section 5-12 the Norwegian Securities Trading Act.