Proximar borrows more money
The Norwegian-owned Japan salmon farmer has secured a new three-year unsecured convertible bond loan of NOK 100 million.
Of the NOK 100m (£8m), NOK 75m is new money, while NOK 25m is money carried over from Proximar's existing convertible bond loans, the company states in a stock exchange announcement.
The conversion price is NOK 0.60 per share. The convertible bond matures on August 6, 2029 and, except in the event of a change of control, cannot be converted for shares the first six months after issuance.
The interest rate is high: 13% per year and is capitalised as payment interest in the form of new bonds or payment-in-kind (PIK), in which unpaid interest is added directly to the total principal balance of the loan, in the first year. Thereafter, the interest is either 15% PIK or 7% per year paid in cash, at the company's option.
Provides additional financing
The company writes that the net proceeds from the convertible bond, together with the extension of the existing bond, provide Proximar with additional long-term financing as the company continues to build biomass and harvest volumes.
"The transaction follows a constructive dialogue with Proximar's banks, and the company has received an exemption from the sales requirement in the syndicated bank loan for the second quarter of 2026," it says.
Proximar says that it intends, to the extent practicable, to invite other shareholders and existing bondholders who did not participate in this tranche to subscribe to a subsequent tranche of the convertible bond on equal terms over the next few months.
"This is subject to applicable legislation, stock exchange rules and market practices," it reports.
Strategic review
Plans for the now-completed bond loan were first announced on July 10, when Proximar also said that its board had engaged the Japanese investment bank Nomura International to conduct a strategic review of the company.
According to Proximar, the goal is to strengthen the capital structure and find solutions for the long-term refinancing of the balance sheet.
The review will, among other things, assess the possibility of attracting a long-term industrial investor for the business in Japan. The company notes that interest from Japanese investors has been strong.
