Bergen, Norway-headquartered Mowi, which is responsible for 20 percent of global farmed salmon production, has announced that it has entered into a term sheet to refinance its existing bank facility.
A group of banks is providing a EUR 1.8 billion (USD 2.1 billion), five-year senior secured sustainability-linked multicurrency revolving credit facility. Interest on the facility is linked to Mowi’s performance against sustainability key performance indicators linked to Mowi’s overall environmental, social, and governance strategy, the company said in a press release.
“The sustainability-linked facility is a significant step towards Mowi’s goal of 100 percent green or sustainable financing,” Mowi said.
The principal financial covenant of the facility is a minimum equity ratio of 35 percent. The facility includes a so-called accordion increase option, which will allow Mowi and its lenders to mutually agree to increase the size of the facility by an additional EUR 300 million (USD 356.2 million).
The banks involved in the deal include DNB Bank ASA, Nordea Bank Abp, filial i Norge, Coöperatieve Rabobank U.A., ABN AMRO Bank N.V., Danske Bank A/S, Skandinaviska Enskilda Banken AB, and Crédit Agricole Corporate and Investment Bank.
In June, Mowi’s board of directors awarded more than 1.6 million four-year stock options for its senior executives. On 22 June, Mowi senior executives exercised 764,101 of those options at a strike price of NOK 136.51 (USD 15.87, EUR 13.37) per share. The same day, Mowi purchased 764,101 own shares at a price of NOK 233.83 (USD 27.19, EUR 22.91) per share to settle its obligation to deliver the shares. Mowi CEO Ivan Vindheim exercised 76,012 options, Mowi COO Farming Scotland, Ireland and Faroes exercised 64,580 options, and Mowi COO Sales and Marketing Ola Brattvoll exercised 53,967 shares.
“The option scheme forms an important part of Mowi’s long-term remuneration policy for such senior executives. The number of options shall be adjusted for dividend payments and reduced if the profit through exercise of options in a year exceeds two times the fixed annual salary of the option holder,” Mowi said in a press release.
No member of Mowi’s executive team owns more than 10,000 shares of the company’s stock, according to a recent financial disclosure, but each of the 34 members of the company’s senior management was granted between 25,000 and 200,000 options at the company’s annual general meeting on 9 June, 2021, as part of the company’s remunerative share option scheme. The strike price of the options is NOK 247.14 (USD 28.75, EUR 24.22).
Mowi’s stock was trading at NOK 225.30 (USD 26.21, EUR 22.08) on the Oslo Stock Exchange as of Thursday, 1 July.
Photo courtesy of Mowi
