June 8, 2020
Salmones Austral secures US$40 million loan for venture plan
Salmones Austral has announced a deal with three banks for a US$40-million (EUR35.5 million) loan to fund its US$100-million (EUR88.2-million) investment plan for the next three years, SeafoodSource reported.
In early May, the salmon farmer got approval from Chile's financial market regulator, CMF, to register its shares in the securities register—the last regulatory step needed before listing on the stock exchange and launching an initial public offering. A company source said that the bank loan will not replace the IPO but will allow the firm to continue with the proposed investment plan. Given the current situation of the COVID-19 pandemic, the public offering will be held off until market conditions improve.
"When the crisis ends, we must be prepared for the new scenario in the salmon industry, in which efficiency and sustainability will be key factors to compete in the markets in which we are present," Salmones Austral Vice President Christian Samsing stated. He highlighted the company's long-term vision and commitment to the development of the salmon industry in Chile.
The syndicated loan—underwritten by the Norwegian bank DNB, Rabobank, and local bank Banco BCI—complements a US$20 million (EUR17.6 million) revolving line of credit that Salmones Austral has with the same three banks. The new funding will go towards the Los Arrayanes recirculation plant the company is building in the town of Llaguepe, in Region X, and which should be operational in 2021. The resources will also be used to finance Salmones Austral's joint venture with Nova Austral in Region XII, which began operations in early April.
Further, it was decided at the latest shareholders' meeting that the payment of dividends would be suspended during 2020, with the resources saved going to support the firm's strategic investment plan.
The company saw net losses of US$5.9 million (EUR5.2 million) during the first quarter of the year, compared to profits of US$11 million (EUR10 million) in the same quarter of 2019. Sales in tonnes increased during the quarter, but lower sale prices dragged revenues down.
Los Ángeles, Bio Bio, Chile-based Salmones Austral was created in 2013 after the merger of Trusal and Pacific Star. Today, it has annual production of some 45,000 to 50,000 tonnes, exported to more than 20 countries, with more than 1,400 workers operating in two process plants and 20 freshwater and seawater farming centres in the regions of Maule, Biobío, La Araucanía, Los Lagos and Aysén.
