Oceana’s US subsidiary Daybrook Fisheries has repaid $15 million (R283m) of debt and has refinanced its five year loan and revolving credit facility.
Oceana purchased 100% of Daybrook, a company incorporated in Louisiana, US in 2015. The debt raised by Daybrook at its acquisition amounted to $142m (R1.7 billion), which required quarterly capital repayments. This debt was refinanced in 2019 with a final payment due on September 30, 2024. As at June, 2023, Daybrook had repaid $46.4m, resulting in a debt balance of $95.6m (R1.8bn).
Oceana said yesterday given the group’s recent financial performance, continued tightening of US credit markets and the fact that this facility would be classified as current at the end of September 2023, a decision was taken to refinance the facility prior to the end of the 2023 financial year.
The refinancing meant the US debt exposure was reduced by de-leveraging and strengthening the US balance sheet, it meant the group’s interest rate exposure was prudently and proactively managed given the increasing US interest rate environment, and greater flexibility had been introduced in the debt structure in relation to interest rate hedging, Revolving Credit Facility drawdowns and dividend payments to Oceana.
The refinancing had also simplified the covenant and reporting structure.
“All current syndicate lenders participated in the refinance and the majority of lenders expressed increased appetite over and above their existing exposure. The refinance was 1.4 times subscribed, equivalent to an over subscription of $41.9m,” the group said in a statement.
Daybrook refinanced its existing term debt of $95.6m, into a new facility of $80.6m during June 2023, achieved with a $15m cash payment generated during the year that was in excess of operating requirements.
The revolving credit borrowing limit of $25m remained unchanged. Both facilities have a five-year maturity to June 30, 2028.
“The refinance was achieved as a result of the positive financial performance and credit evaluation of Daybrook,” Oceana said.
BUSINESS REPORT