Note 12 - Borrowings

 

(Amounts in USD 1,000)

     

PARENT COMPANY
December 31, 2015

     

CONSOLIDATED

(USD)

Currency

Committed
Facility amount

 

Drawn
amount currency

Drawn
amount USD

Fair value

Interest rate

Duration

Instalments

                   

-

USD

56,722

 

56,722

56,722

56,722

Floating

2017

Quarterly

-

USD

53,458

(1)

53,458

53,458

56,743

Fixed and floating

2021

Semi annually

-

NOK

1,794,615

 

-

203,725

203,725

Floating

2018

Semi annually

-

NOK

331,082

 

-

37,585

37,585

Floating

2022

Quarterly

-

USD

16,800

 

16,800

16,800

16,800

Floating

2019

Semi annually

-

USD

17,091

 

17,091

17,091

17,113

Fixed

2027

Monthly

-

USD

104,495

 

104,495

104,495

107,276

Fixed

2028

Monthly

-

USD

51,745

 

46,888

46,888

50,132

Fixed

2031

Monthly

-

NOK

345,667

(1)

345,667

39,240

41,602

Fixed and floating

2023

Semi annually

-

NOK

3,675

 

3,675

417

417

Floating

2019

Quarterly

-

NOK

2,379

 

2,379

270

270

Floating

2019

Monthly

-

NOK

9,795

 

9,795

1,112

1,112

Floating

2019

Monthly

68,112

NOK

600,000

 

600,000

68,112

68,112

Floating

2018

Bullet

-

NOK

1,880,953

 

-

203,545

210,987

Fixed

2018

Semi annually

-

NOK

220,000

 

220,000

24,974

24,974

Floating

2019

Semi annually

-

NOK

204,250

(1)

193,500

21,966

23,320

Fixed

2019

Semi annually

-

NOK

435,000

 

-

-

-

Fixed or floating

2028

Semi annually

-

NOK

354,000

 

354,000

40,186

40,714

Fixed

2028

Semi annually

-

EUR

49,770

 

49,770

54,346

54,346

Floating

2016

Bullet

-

EUR

250,000

 

-

-

-

Fixed or floating

2028

Semi annually

79,464

NOK

700,000

 

700,000

79,464

79,464

Floating

2019

Bullet

60,000

USD

60,000

 

60,000

-

60,000

Floating

2017

Bullet/Revolving Credit

-

USD

9,311

 

9,311

-

9,311

Floating

2020

Quarterly

207,576

Total secured debt

     

1,139,710

1,160,678

     

420

Fees and expenses

     

-17,125

-13,245

     

207,996

Total

     

1,122,585

1,147,433

     
                   

19,208

(CIRR loan) NOK

169,200

 

169,200

19,208

20,215

Fixed

2019

Semi annually

-

(CIRR loan) USD

68,794

 

68,794

68,794

71,944

Fixed

2025

Semi annually

226,784

Total long-term debt including fees and expenses

1,214,467

1,239,592

     

(1) Under the USD 53.4 million facility, part of the loan (USD 25.6 million) is fixed for a 6-year term to average interest rate of 7.58%.
Under the NOK 345.7 million facility, part of the loan (equivalent to USD 19.9 million) is fixed for an approximately 8-year term to average interest rate of 5.36%.
Under the NOK 204 million facility a majority of the loan is fixed for a 4-year term to an average interest of 4.18%.

The Company has a portfolio of bank loans secured with mortgage in vessels. The creditor and guarantors are in general first class commercial banks
and state owned financial institutions with ratings on or above BBB- and AAA.
As of year end, the Company had issued two high yield unsecured bonds of NOK 600 million and NOK 700 million respectively.
The high yield unsecured bonds are listed on Oslo Stock Exchange, have no amortization and matures in 2018 and 2019.

December 31, 2014
PARENT COMPANY

(Amounts in USD 1,000)

             

CONSOLIDATED

(USD)

Currency

Committed
Facility amount

 

Drawn amount
currency

Drawn
amount USD

Fair value

Interest rate

Duration

Instalments

                   

-

USD

79,132

 

79,132

79,132

79,132

Floating

2017

Quarterly

-

USD

62,791

(1)

62,791

62,791

67,251

Fixed and floating

2021

Semi annually

-

NOK

1,740,247

(2)

-

234,118

234,118

Floating

2015

Semi annually

-

NOK

320,762

 

-

43,153

43,153

Floating

2022

Quarterly

-

USD

19,600

 

19,600

19,600

19,600

Floating

2019

Semi annually

-

USD

16,482

 

16,482

16,482

16,310

Fixed

2027

Monthly

-

USD

114,085

 

114,085

114,085

115,824

Fixed

2028

Monthly

-

USD

54,598

 

49,740

49,740

52,980

Fixed

2031

Monthly

-

NOK

365,137

(1)

365,137

49,123

51,811

Fixed and floating

2023

Semi annually

-

NOK

4,655

 

4,655

626

626

Floating

2019

Quarterly

-

NOK

3,060

 

3,060

412

412

Floating

2019

Monthly

-

NOK

12,364

 

12,364

1,663

1,663

Floating

2019

Monthly

80,719

NOK

600,000

 

600,000

80,719

80,719

Floating

2018

Bullet

-

NOK

2,351,700

 

2,197,333

295,611

305,205

Fixed

2018

Semi annually

-

NOK

240,000

 

240,000

32,288

32,288

Floating

2019

Semi annually

-

NOK

222,167

 

207,833

27,960

29,653

Fixed or floating

2019

Semi annually

-

NOK

435,000

 

-

-

-

Fixed or floating

2027

Semi annually

-

NOK

360,000

 

-

-

-

Fixed or floating

2027

Semi annually

-

EUR

49,770

 

21,330

25,931

25,931

Floating

2016

Bullet

94,172

NOK

700,000

 

700,000

94,172

94,172

Floating

2019

Bullet

174,891

Total secured debt

     

1,227,605

1,250,847

     

-10

Fees and expenses

     

-13,245

-13,245

     

174,881

Total

     

1,214,360

1,237,602

     
                   

28,453

(CIRR loan) NOK

211,500

 

211,500

28,453

30,114

Fixed

2019

Semi annually

203,334

Total long-term debt including fees and expenses

1,242,813

1,267,716

     

1) Under the USD 62.8 million facility, part of the loan (USD 30.2 million) is fixed for a 7-year term to average interest rate of 7.58%.
Under the NOK 365.1millon facility, part of the loan (equivalent to USD 25.0 million) is fixed for an approximately 9-year term to average interest rate of 5.36%.

Under the NOK 222 million facility a majority of the loan is fixed for a 5-year term to an average interest of 4.18%.

(2) The USD 234.1 million facility has a balloon repayment in 2015. The term for this debt facility shall either be renegotiated or auto- matically extended subject to certain requirements regarding vessel employment.

Instalments per December 31, 2015 falling due over the next 5 years

 

PARENT COMPANY

CONSOLIDATED

(Amounts in USD 1,000)

 

Mortgage
debt

Other interest
bearing debt

Total

         

-

2016

152,999

-

152,999

60,000

2017

197,290

-

197,290

68,112

2018

367,904

68,112

436,016

79,464

2019

72,893

79,464

152,357

-

2020

41,890

 

41,890

-

Thereafter

159,158

-

159,158

207,576

Total

992,134

147,576

1,139,710

The book value of mortgaged assets consist of non-current tangible assets and portion of the accounts receivable and amounts to USD 1,623 million at year-end.

There are various financial covenants related to the Company's debt agreements. The main prevailing covenants are:
- Free cash in excess of USD 50 million
- Fleet Value Adjusted Equity Ratio in excess of 30%
- Book equity in excess of USD 200 million
- Certain ratio of Interest Coverage
- Certain ratio of FInancial Indebtedness to EBITDA

The amount of Financial Indebtednes shall be calculated by allocating new Financial Indebtedness to be incurred by the Company for the long term debt financing of each future newbuilding on an accumulating basis by 1/12 each month after delivery of each such newbuilding. The Fleet Value Adjusted Equity Ratio shall be based on broker estimates.

Based on Broker's estimates applied by the Company, the Free Value Adjusted Equity Ratio is 35 %.

CIRR loan (Both Consolidated and Parent Company)

2015

2014

       

Total CIRR loan commitment

88,002

28,453

CIRR loan drawn on 31.12

88,002

28,453

Commitment as of December 31

-

-

Prior to ordering vessels from Norwegian yards, the Company applied for fixed 12-year interest rate options related to the long-term financing of such vessels. The Company was granted options for each of the relevant vessels by the Norwegian Export Credit Agency and the Company sold the rights to exercise such options to a first class international bank (the “Bank”).

Proceeds from the long-term loans drawn from the Norwegian Export Credit Agency were placed as corresponding deposits in the Bank as financial security for the loans. The recognition of gains related to the sold options is recorded over the term of the respective drawn loans.

In relation to the sale of a vessel in 2015 that had a fixed 12-year USD interest rate associated with its mortgage debt financing, proceeds from the sale, which were equivalent at that date to the remaining outstanding long-term loan from the Norwegian Export Credit Agency, were placed on deposit as security for the Bank. The loan will continue until maturity and related interest and instalment payments will be serviced by the amount on deposit in the Bank according to the initial 12-year amortization profile.

Unearned CIRR

 

 

(Amounts in USD 1,000)

2015

2014

Beginning of the year

1,786

2,155

Recognized in the profit and loss account

-368

-368

Net unearned CIRR as of December 31

1,418

1,786