Note 12 - Borrowings

CONSOLIDATED

Drawn amount

(Amounts in USD 1,000)

2016

2015

Secured

Current

Non-current

Total

Current

Non-current

Total

Bank Loans

177 834

1 091 784

1 269 618

114 660

817 474

932 134

Loans from related parties

-

60 000

60 000

-

60 000

60 000

Total secured borrowings

177 834

1 151 784

1 329 618

114 660

877 474

992 134

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

150 812

150 812

-

147 576

147 576

Total unsecured borrowings

-

150 812

150 812

-

147 576

147 576

Total borrowings

177 834

1 302 596

1 480 430

114 660

1 025 050

1 139 710

Fees and expenses

-

-9 537

-9 537

-

-17 125

-17 125

Total borrowings incl. fees

177 834

1 293 059

1 470 893

114 660

1 007 925

1 122 585

CONSOLIDATED

Fair value

(Amounts in USD 1,000)

2016

2015

Secured

Current

Non-current

Total

Current

Non-current

Total

Bank Loans

177 834

1 108 433

1 286 267

114 660

838 442

953 102

Loans from related parties

-

60 000

60 000

-

60 000

60 000

Total secured borrowings

177 834

1 168 433

1 346 267

114 660

898 442

1 013 102

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

150 812

150 812

-

147 576

147 576

Total unsecured borrowings

-

150 812

150 812

-

147 576

147 576

Total borrowings

177 834

1 319 245

1 497 079

114 660

1 046 018

1 160 678

Fees and expenses

-

-9 537

-9 537

-

-17 125

-17 125

Total

177 834

1 309 708

1 487 542

114 660

1 028 893

1 143 553

PARENT COMPANY

Drawn amount

(Amounts in USD 1,000)

2016

2015

Secured

Current

Non-current

Total

Current

Non-current

Total

Loans from related parties

-

60 000

60 000

-

60 000

60 000

Total secured borrowings

-

60 000

60 000

-

60 000

60 000

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

150 812

150 812

-

147 576

147 576

Total unsecured borrowings

-

150 812

150 812

-

147 576

147 576

Total borrowings

-

210 812

210 812

-

207 576

207 576

Fees and expenses

-

-

-

-

420

420

Total borrowings incl. fees

-

210 812

210 812

-

207 996

207 996

PARENT COMPANY

Fair value

(Amounts in USD 1,000)

2016

2015

Secured

Current

Non-current

Total

Current

Non-current

Total

Loans from related parties

-

60 000

60 000

-

60 000

60 000

Total secured borrowings

-

60 000

60 000

-

60 000

60 000

Unsecured

Current

Non-current

Total

Current

Non-current

Total

Floating rate notes / Bonds

-

150 812

150 812

-

147 576

147 576

Total unsecured borrowings

-

150 812

150 812

-

147 576

147 576

Total borrowings

-

210 812

210 812

-

207 576

207 576

Fees and expenses

-

-

-

-

420

420

Total

-

210 812

210 812

-

207 996

207 996

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 mature in 2018 and 2019.

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 mature in 2020 and 2021.

Parent company

Consolidated

(USD 1,000)

Instalments per December 31, 2016

falling due over the next 5 years

Mortgage debt

Other interest bearing debt

Total

60,000

2017

156,719

-

156,719

69,606

2018

100,031

-

169,637

81,201

2019

157,393

69,606

238,600

-

2020

489,185

81,206

489,185

-

2021

170,453

-

170,453

-

Thereafter

255,837

-

255,837

210,807

Total

1,329,618

150,812

1,480,430

The book value of mortgaged assets consist of non-current tangible assets and portion of the accounts receivables and amounts to USD 1,395 million at year end.

There are various financial covenants related to the Company’s debt agreements. The main prevailing covenants are:

  • Value Adjusted Equity Ratio
  • A ratio of Financial Indebtedness to EBITDA
  • Free cash covenant
  • The Company and Parent are in compliance with the financial covenants as per 31 December 2016.

CIRR loan (Both Consolidated and Parent company)

2016

2015

Total CIRR loan commitment

76,215

88,002

CIRR loan drawn on 31.12

-76,215

-88,002

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 such options for each of the relevant vessel by the Norwegian Export Credit Agency. The Company made certain sale of the right to exercise such options to a first class international bank (the “Bank”). Long-term loans drawn from the Norwegian Export Credit Agency are placed as corresponding deposits in the Bank as financial security for the loans drawn. Recognition of the gain, related to each option, is recorded over the term of any drawn loans. In relation to sale of a vessel in 2015 which had a fixed 12-year USD interest rate associated with its mortgage debt financing, the receipt from the sale equivalent to the amount of the outstanding long-term loan from the Norwegian Export Credit Agency were placed on deposit in the Bank as financial security for the drawn loan at the date when the sale was concluded.

Unearned CIRR

2016

2015

Beginning of the year

1,418

1,786

Recognized in the profit and loss account

-368

-368

Paid-back CIRR

-

-

Commitment as of December 31

1,050

1,418

Board Of Directors

Financial Statements

Notes