June 30, 2023

Andfjord Salmon raises US$57 million through private placement

Norwegian land-based salmon farmer Andfjord Salmon has successfully raised kr615 million (US$57 million) through a private placement.

Andfjord announced the contemplated private placement on June 26, with a goal to raise gross proceeds of kr550-650 million (US$51-60 million). Less than eight hours later the same day, the company announced on the Oslo Børs that it had successfully raised the funds it needed.

The funds were raised through an allocation of 15,974,026 offer shares sold at a subscription price of kr38.50 (US$3.57). ABG Sundal Collier, Arctic Securities and SpareBank 1 acted as Joint Bookrunners on the private placement.

The majority of the shares were allocated to Jerónimo Martins Agro-Alimentar, which purchased 10 million shares at a value of kr385 million (US$35 million). Jerónimo Martins is a Portugal-based international food industry group that first invested in the company in June 2022, and has since become one of the company's largest shareholders.

The proceeds from the private placement, the company said, will be used to expand production capacity at its Kvalnes, Norway facility located on the island of Andøya and for general corporate purposes. The successful private placement comes soon after the company announced it plans to progress with a build-out of the facility, targeting 40,000 tonnes of head-on gutted salmon production in the next seven years.

Andfjord first announced that the company plans to expand its facilities on June 3 after it successfully secured a kr700 million (US$64 million) loan from SpareBank 1 Nord-Norge and bank alliance partners, including Eksfin. The loan total later increased to kr825 million (US$76 million) on June 20 as SpareBank 1 SMC confirmed a commitment to take part in the bank consortium.

That increase replaced a kr125 million (US$11.5 million) allowance for the leasing facility in the loan documentation, the company said. The facility was originally intended to fund equipment in its construction phase.

Earlier this month Andfjord Salmon chief executive officer Martin Rasmussen said the company is in a "very strong position" as it plans for future growth.

- SeafoodSource