Havila Kystruten AS announced that reference is made to the stock exchange announcement dated 5 July 2023 regarding the signing of an exclusivity agreement and term sheet in respect of a EUR 305 million senior secured first lien facility by Havila Kystruten AS and additional raise of EUR 85 million of new capital to be fully funded for the Company's refinancing and delivery of remaining vessels from the yard. Following constructive dialogue with stakeholders and potential equity investors, the Company announced that it has received an offer from Havila Holding, its largest shareholder, to provide a EUR 20 million subordinated loan with payment in Kind interest and other terms materially in-line with the EUR 305 million senior secured loan and that the remaining capital of EUR 65 million will be sought raised through an equity private placement. Completion of the Private Placement and the completion of the Bond Issue are mutually conditional, and are also conditional on the provision of the EUR 20 million subordinated loan from Havila Holding AS.

The Bond Issue: As set out in the stock exchange on 5 July 2023, the Bond Issue will be provided by a large global private credit fund and will consist of a three-year EUR 305 million facility to cover the refinancing of all four vessels. The facility carries a cash interest of 3-months EURIBOR plus 6.00% and PIK interest of 3.50%. Subject to reaching certain financial milestones, the total interest may be reduced to EURIBOR plus 7.75%.

The facility will amortize with EUR 50 million at a price of 107% of par after 15 months with a guaranteed settlement by Havila Holding AS (the Company's largest shareholder owning 60.42%) through the issuance of a new unsecured debt instrument. The remaining amount matures after 3 years at a price of 106%. The managers for the Bond Issue are Arctic Securities AS, Fearnley Securities AS and Nordea Bank Abp, filial i Norge.

The Private Placement: The Company has also mandated the Managers to advise on and effect the Private Placement which will consist of new ordinary shares in the Company, raising gross proceeds of the NOK equivalent of approximately EUR 65 million. The offer price ("Offer Price") is NOK 1.00 per share and has been determined through discussions with potential cornerstone investors. The number of New Shares to be issued will be determined by the Company's board of directors in consultation with the Managers following an accelerated bookbuilding process.

The proceeds from the Private Placement will be used to repay certain credit issued by the Tersan yard, making payment of delivery instalments to Tersan, as well as to cover operational expenses and transactional costs. Havila Holding AS (the Company's largest shareholder owning 60.42%) has pre- committed to subscribe for and will be allocated New Shares for the NOK equivalent of EUR 40 million. Based on a limited sounding process, the Private Placement is supported by existing shareholders and other investors.

The Private Placement will be directed towards Norwegian and international investors, subject to applicable exemptions from relevant registration, filing and prospectus requirements, and subject to other applicable selling restrictions. The minimum application and allocation amount has been set to the NOK equivalent of EUR 100,000. The Company may however, at its sole discretion, allocate amounts below EUR 100,000 to the extent exemptions from the prospectus requirements in accordance with applicable regulations, including the Norwegian Securities Trading Act and the prospectus regulation 2017/119 and ancillary regulations, are available.