Santiago, Chile-based seafood firm Camanchaca has rescheduled the revolving long-term financing it contracted with the banks DNB Bank, Rabobank, and Banco Santander Chile.
The newly signed agreement modifies its tranche B financing, awarded in November 2017, totalling USD 33.3 million (EUR 33.6 million), which is fully used and was slated to amortize in 2024. The new terms increase the company's tranche B financing to USD 40 million (EUR 40.4 million) and extend the repayment schedule to a five-year term, with a three-year grace period. The agreement also includes two reductions of 10 percent each at the end of the third and fourth year, and a final reduction at the end of the fifth year of the remaining 80 percent.
The cost of the financing line is based on a variable margin of the secured overnight financing rate (SOFR), which replaces the LIBOR rate as the loan's base rate. The LIBOR can fluctuate between 2.75 and 4 percent per year and depends on the coverage of net financial debt over the earnings before interest, taxes, depreciation, and amortization (EBITDA) of Camanchaca's last 12 months of operations. Salmones Camanchaca, the company’s salmon farming subsidiary, is not be considered for purposes of this calculation, it said.
“This modification of the refinancing agreement conveniently shifts Camanchaca S.A.'s amortization schedule, which now extends until September 2027, thus improving the cash flow profile for the next five years,” Camanchaca CEO Ricardo García said in a statement sent to Chile’s financial markets regulator, CMF.
Salmones Camanchaca recently reported its Q2 results. It said it has continued to benefit from high market prices while simultaneously decreasing its costs, which combined to bolster its bottom line. Camanchaca's Net profits for the quarter came in at USD 16.9 million (EUR 17.1 million), versus a loss of USD 8.4 million (EUR 8.5 million) during Q2 2021. Operating revenue for the quarter ended at USD 97.4 million (EUR 98.3 million), nearly double Q2 2021.
Photo courtesy of Camanchaca
