Refinancing secures new growth for Pan Fish

The Board of Directors at Pan Fish has unanimously approved the agreement regarding refinancing of Pan Fish entered into with the company's bank syndicate and principal shareholders.

The Board of Directors at Pan Fish has unanimously approved the agreement regarding refinancing of Pan Fish entered into with the company's bank syndicate and principal shareholders. The agreement secures Pan Fish financial and operational flexibility to gradually rebuild production so that the company can reach its ambition to become lowest cost producer and reassume the position as the world's leading fish farming company.

- This is an important milestone for Pan Fish. Through a comprehensive turnaround process and a close and constructive dialogue with our principal shareholders, the company has succeeded to negotiate a plan for a refinancing that will enable Pan Fish to again assume the position as a global leading fish farming company. The core of the refinancing is the ambition to become the lowest cost producer of superior quality salmon, comments CEO Atle Eide and adds that the latter months results proves that the company is moving in the right direction.
 
The refinancing will significantly improve Pan Fish liquidity and solidity. Among the main features of the agreement is a write-down of the company's share capital from NOK 0.04 to NOK 0.02 per share, and a subsequent increase of face value from NOK 0.02 to NOK 2.00 through a reverse-split of the company's shares in the ration of 100:1.
 
In addition the bank syndicate, whom also comprise the principal shareholders of Pan Fish, will convert a total of NOK 500 million from bank debt to share capital and a new subordinated loan. Pan Fish will in addition carry out a public share issue limited to NOK 250 million with priority to the remainder of shareholders at a share price of NOK NOK 2.00. The company's two principal shareholders, Nordea and DnB NOR, will guarantee NOK 100 million in the share issue. Furthermore a new convertible liquidity loan of up to NOK 150 million will be given at a conversion ratio of NOK 2.00. The loan will be reduced at a ratio 1:1 by the subscribed amount in the public share issue exceeding NOK 100 million.
 
For further details see previously announced stock exchange notification.
 
- As a part of the turnaround Pan Fish has been through the last twelve months a solid commercial basis has been established for the future development of the Group. The refinancing in combination with a strengthened salmon market provides a secure foundation for growth. Our ambition is to bring our consolidated production back to a level between 80 000 and 90 000 tonnes round weight during the forthcoming years. This growth can be accomplished without significant investments in new infrastructure, says Atle Eide.
The refinancing plan is subject to approval by the company's shareholders' meeting, and Pan Fish is planning to call an extraordinary shareholder's meeting 19 August. Notification will be distributed no later than two weeks before the extraordinary shareholder's meeting.

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