Lindblad gets $122.48 million loan for use in vessel purchase

By Wendy Van Sickle

Columbus, Ohio, April 11 – Lindblad Expeditions Holdings, Inc. entered on Monday into a senior secured credit agreement with Citibank, NA, London Branch and Eksportkreditt Norge AS that provides for a loan of up to $122.48 million to provide pre- and post-delivery financing for up to 80% of the purchase price of a new vessel, according to an 8-K filing with the Securities and Exchange Commission.

Completion of the new expedition ice-class cruise vessel is targeted for September 2021.

Prior to delivery of the vessel, the loan will bear interest at Libor plus a margin effectively equal to 300 basis points.

From and after delivery of the vessel, the loan will bear interest either, at the borrower’s choice, at a fixed interest rate effectively equal to 636 bps or a floating rate equal to Libor plus 300 bps.

The loan will amortize quarterly, with 70% maturing over 12 years from drawdown, subject to a reduction in tenor of up to six months if the vessel is delivered between 180 and 360 days after the scheduled delivery date, and 30% maturing over five years from drawdown.

The loan will be secured by an assignment of the shipbuilding contract, a first priority mortgage over the new vessel, an assignment of refund guarantees, an assignment of related insurance, a pledge by Lindblad Maritime Enterprises Ltd. of its shares of the borrower and a lien on substantially all of the borrower’s personal property.

Seventy percent of the loan will be guaranteed by Garantiinstituttet for eksportkreditt, the official export credit agency of Norway.

Lindblad Expeditions is a New York-based expedition cruising and extraordinary adventure travel company.

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