Viking Line has received a temporary exemption from the covenants included in its financing agreement for its new vessel, ‘Viking Glory’ (pictured).
The Board, based on an authorisation granted by an Extraordinary General Meeting (EGM) held on 22nd November, 2021, agreed to issue a rights offering of around €52 mill.
As a result, the company will offer for subscription, based on pre-emptive rights for its existing shareholders, a maximum of 6,480,000 new shares.
Viking said that it planned to use the proceeds to strengthen its capital structure, as well as its financial and liquidity position, which have been impacted by the exceptional circumstances caused by the Covid-19 pandemic.
Furthermore, it is aimed to support the execution of Viking Line’s strategy and potential for continuation of profitable growth in the post-pandemic environment.
It is also being carried out to fulfil certain obligations included in the company’s financing agreements, including that of the ‘Viking Glory’.
The subscription price is €8 per share and the first trading date without subscription rights was 30th November, 2021, while the shares’ subscription period commenced on 7th December and will end on 21st December.
Viking Line explained that COVID-19 had a significant impact on its earnings and liquidity. The company claimed to have reacted rapidly and decisively by adapting its operations to the changed market situation with a variety of measures, including cost reductions, attaining government support measures, and negotiation of new and more flexible financing agreements.
Nordea Bank acted as the offering’s sole global co-ordinator and lead manager and Hannes Snellman Attorneys acted as legal advisor to the company.