Salmon Evolution Holding ASA (“Salmon Evolution” or the “Company”, OSE: SALME) refers to the Company’s report for the fourth quarter 2020 published on 2 March 2021 where it was stated that the Company expected to finalize a committed term sheet for long term bank debt financing by Q2 2021.

Salmon Evolution is pleased to announce that it has now entered into a committed term sheet (the “Term Sheet”) with Nordea as agent and Sparebanken Vest as co-lender (jointly the “Lenders”) for a senior secured debt financing package of up to NOK 625 million relating to its phase 1 build out at Indre Harøy.

The debt financing package consists of the following credit facilities:

• NOK 525 million senior secured credit facility which will be used to finance construction capex for Indre Harøy phase 1 (the “Construction Facility”)
• NOK 525 million in long term debt which will refinance the Construction Facility upon completion of Indre Harøy phase 1 and consisting of the following:
• NOK 385 million senior secured term loan facility with the Lenders (the “Term Loan Facility”)
• NOK 140 million in a separate long term loan facility with a third-party lender (the “Third-Party Loan”). The Third-Party Loan will be subject to a coordination agreement with the Lenders and the Company has a separate process ongoing to secure and finalize this facility
• NOK 100 million senior secured overdraft facility (the “Overdraft Facility”) which will be used for working capital purposes, hereunder financing of biomass and receivables

The Construction Facility and the Term Loan Facility is partly guaranteed by the Norwegian Export Credit Guarantee Agency (“GIEK”).

The Term Loan Facility will be repaid over a 15 year profile and have a 3 year term from completion of Indre Harøy phase 1 with 2×1 year extension options.

Mr. Håkon André Berg, CEO of Salmon Evolution comments:

“The finalization of this committed term sheet at commercial terms deemed very competitive, is yet another major milestone for Salmon Evolution and secures a fully funded platform for our committed projects. We are very grateful for the support shown by the Lenders and GIEK and view this as a solid testament to Salmon Evolution’s technology approach and overall business model”.

Ms. Louise Haahjem, Head of Business Banking Seafood in Nordea further comments:

“We have followed Salmon Evolution’s development with great interest for a long time and are very happy about being able to contribute to the realization of such a ground-breaking project. The combination of a strong industrial ownership, solid management team, strong ESG profile and a conservative but yet disruptive business model fits very well with Nordea’s ambitions of being a leading financing partner for the Norwegian seafood industry”.

Credit committee approvals have been undertaken by both the Lenders and GIEK and the debt financing package is further subject to customary conditions precedent, including due diligence and finalization and signing of legally binding documentation.

The Company expects closing of the respective facilities during Q2 2021.