Proximar Seafood AS (“Proximar”) has, through its subsidiary Proximar Ltd. (Japan), received a loan offer from a syndicate consisting of two large Japanese banks for a corporate loan of JPY 8.8 billion (NOK ~680 million). The offer consists of a Highly Confident Letter along with a term sheet (the “Term Sheet”). Subject to final approval, Proximar will consequently secure the complete debt financing according to the targeted capital structure for its first land-based salmon farming facility outside Tokyo, Japan.
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“We are delighted to finally see the entire debt financing now coming in place for our stage 1 facility. Proximar has evaluated multiple debt financing alternatives over the last two years and the offer represents the company’s preferred option for debt financing in line with our targeted debt ratio. To obtain a complete debt solution for both the construction and operating phases at attractive terms, marks a breakthrough for the company,” says Joachim Nielsen, CEO of Proximar.
A Highly Confident Letter is typically issued in Japan after a substantial part of the due diligence is completed and at the time when the execution risk is assumed minimal. The loan offer implies that Proximar will reach its ~45 percent debt ratio ambition.
Highly Confident Letter
The Highly Confident Letter and Term Sheet received by Proximar have been approved internally in the two banks. It is therefore to be considered a strong statement of comfort from the banks to provide the financing according to the received Term Sheet.
The loan offer is structured as a syndicate, fully covered by the two involved banks. The loan is considered to be offered at attractive terms with an interest rate below 5% and addresses both the remaining construction financing as well as operational financing.
The offer is subject to customary conditions such as final credit committee approval, legal due diligence, and completion of loan documentation. Disbursement of the first part of the loan is scheduled for March 2023 and the second during summer 2023, at the time of take-over of the post-smolt grow-out building.
Construction and production both on track
The first batch of eggs, which was inserted into the facility in October, thrives in the first feeding department. Currently three batches are in production and performing well and in accordance with expectations. Going forward, Proximar expects new batches to arrive monthly, enabling continuous harvest from medio 2024.
Meanwhile, the construction work of the post-smolt grow-out building is progressing as scheduled. Currently, installation of tanks and RAS-equipment is ongoing. The entire facility is expected to be finished in the third quarter of 2023.
For more information, please contact:
Pål K. Grimsrud, CFO, +47 99 47 75 99, pkg@proximar.com
Joachim Nielsen, CEO, +81 70 2811 9898, jn@proximar.com
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility and production at the foot of Mount Fuji in Japan. The company inserted its first batch in October 2022. Through land-based fish farming, using high-quality ground water secured close to Mount Fuji, the company will produce fresh Atlantic Salmon, harvested the same day. Proximar’s location, near one of the world’s most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.
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