Harland & Wolff negotiates £70 million refinancing facility via Astra

By Marisa Wong

Los Angeles, Nov. 9 – Harland & Wolff Group Holdings plc announced it entered into an exclusive term sheet with Astra Asset Management UK (Astra) Ltd. for the proposed refinancing of its credit lines.

Currently, the proposed committed facility is £70 million, and both parties will be working together to increase this to £100 million in due course, according to a press release.

The transaction would involve refinancing Harland & Wolff’s existing debt with Riverstone Capital Partners in full and would provide for additional financing towards capital expenditure and working capital requirements.

The new credit facility will be for a period of two years with three annual extension options.

The company expects that this new facility will be on better economic terms than its existing debt facility but is contingent on any further movements of the Bank of England’s Base rate and other market movements prior to closing.

As part of the transaction, Astra will be issued 15 million warrants over new ordinary shares in Harland & Wolff at an exercise price of 6.2385p per share, which is the 14-day volume weighted average price at the time of execution of the term sheet. The warrants will expire in 60 months from the date of issue, which will be the date of financial close with annual extensions to the expiry date should the credit facility be extended on an annual basis.

Closing is expected within four to six weeks.

Harland & Wolff is an offshore construction company based in Belfast, United Kingdom.

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