SALMON EVOLUTION SECURES NOK 52 MILLION BANK DEBT FINANCING
Salmon Evolution secures NOK 52 million bank debt financing. In Salmon Evolution ASA’s third quarter report, it was stated that the Company was in the process of obtaining bank debt financing in relation to Kraft Laks.
The Norwegian land-based salmon farmer says it now has entered into binding agreements with Nordea for bank debt financing of up to NOK 52 million on favourable commercial terms, reflecting the solid operational and financial track record of Kraft Laks.
The bank debt financing is split across three separate facilities and will be used as follows:
- General corporate purposes, hereunder financing of working capital
- Investments relating to facility upgrades
- Refinancing of existing NOK 25 million seller’s credit with previous owners of Kraft Laks
Together with the bank debt financing package announced in 2q 2021, Salmon Evolution has during the course of 2021 raised a total of NOK 677 million in bank debt.
In August, Salmon Evolution ASA acquired 100% of the shares in Kraft Laks AS, a family owned smolt producer located in Dalsfjorden in the Volda municipality of Norway.
Kraft Laks has a documented track record as a high quality smolt producer and the facility, under the selling family’s ownership, has been producing smolt since 1995. Over the last years, the majority of the smolt produced has been sold on a long-term contract to one of the major salmon farmers. The company has an annual production of around 1.8 million smolt, but has a license to produce up to 5 million smolt p.a., subject to certain conditions. The parties have identified significant expansion opportunities for the facility which, if realised, is expected to also cover Salmon Evolution’s smolt needs for at least phase 2 at Indre Harøy based on current plan.
One of the major advantages with Kraft Laks is its excellent freshwater supply. From 3 inlet stations (2 rivers), Kraft Laks has good access to clean freshwater from the surrounding mountains. Also, a royal resolution secures minimum freshwater supply from the local power station at all times. The solid freshwater access has enabled Kraft Laks to utilize a similar production technology as Salmon Evolution’s hybrid flow-through system (HFS) with reuse of water, CO2 stripping and oxygenation, making Kraft Laks a perfect fit for Salmon Evolution