Hoegh announces intention to list on Euronext

Höegh Autoliners ASA (“Höegh Autoliners” or the “Company”) recently announced its intention to launch a private placement of new shares in the Company (the “Offering”) and to list the Company’s shares on Euronext Growth Oslo (the “Listing”).

Höegh Autoliners is one of the leading global providers of deep-sea RoRo transportation services, operating a fleet of around 40 Pure Car and Truck Carriers (“PCTC”) sailing in global trade systems. Offering safe and secure deep-sea transportation of cargo such as cars, high and heavy machinery and breakbulk, its customers include most of the leading global vehicle and equipment manufacturers. With an average carrying capacity of around 6,700 car-equivalent units (“CEU”) per vessel, the Company has the largest average vessel size and lowest emissions in the industry.

Höegh Autoliners is owned by Leif Höegh & Co Holdings AS (“LHC”) with 60.5%, A.P. Møller – Mærsk A/S with 38.2%, and the Company’s CEO, Andreas Enger, with 1.3%.

The Company has a solid history of delivering emission cuts and long-term sustainability results. Since 2008, the Company has achieved an improved carbon intensity of 37% across its fleet, putting it at the forefront of sustainable shipping and substantially ahead of the IMO 2030-target of 40% reduction.

To accelerate its green transition, expand the fleet and deliver market leading low-to-zero emission transportation services to its customers, Höegh Autoliners has launched a transformational newbuilding program. The Company has entered into a Letter of Intent (“LOI”) with China Merchants Heavy Industry (“CMHI”) to build a series of multi-fuel and ammonia ready Aurora class vessels. Under the terms of the LOI with CMHI, the first two vessels will be delivered in H2 2024 and the next two vessels in H1 2025. In addition, Höegh Autoliners has options for another four + four Aurora class vessels. With a capacity to carry up to 9,100 cars, the Aurora class will be the world’s largest and most environmentally friendly PCTCs.

The Offering will comprise a private placement of new shares expected to raise gross proceeds to the Company in the region of NOK 1 billion (the “Offer Shares”). The net proceeds from the Offering will primarily be used to equity finance the delivery of four Aurora class vessels. Four cornerstone investors; LHC, KLP Kapitalforvaltning AS, Intertrade Shipping AS and Global Value Investment Corp (the “Cornerstone Investors”), have undertaken to subscribe for shares for a total amount of approximately NOK 425 million (equivalent to USD 50 million) in the Offering (of which LHC has committed NOK 250 million), subject to certain conditions and for a price per share of up to NOK 21.00, which equates to a pre-money equity value of the Company of NOK 2,766 million (equivalent to USD 325 million). In addition to the underwriting commitments from the Cornerstone Investors mentioned above, the Company has received significant anchor interest from several international shipping sector specialists as well as other local and international generalist investors.

Leif O. Høegh, Höegh Autoliners Chair, commented: “We are very pleased to announce our intention to list Höegh Autoliners and open the next chapter in its history. By raising capital and listing the Company, we will be able to accelerate investments and further strengthen our customer service and leading position in decarbonisation and cargo efficiency.”

Andreas Enger, Höegh Autoliners CEO, commented: “Listing on the Euronext Growth confirms our ambitions and capability as a company. The global market in our sector is rapidly strengthening through increased volumes and decreasing global capacity. We have secured yard slots to build the first four ammonia ready multifuel vessel, making us the undisputed frontrunner in our industry’s path to a zero emissions future.”

The Company has seen strong improvement in performance through 2021, with adjusted EBITDA growing from USD 38 million in Q1 2021 to USD 51 million in Q3 2021 with further improvement to around USD 65 million expected in Q4 2021. The Company expects adjusted EBITDA for the full-year 2021 to be in the range of USD 195 – 200 million. The Company sees a strong outlook for 2022. As of 30 September 2021, the average broker estimates give a value adjusted equity of USD 550 million for the owned fleet, with a further USD 54 million in additional value of lease options and profit share for chartered vessels, i.e. in total USD 604 million.

ABG Sundal Collier ASA and DNB Markets, a part of DNB Bank ASA, are acting as Joint Global Coordinators and Joint Bookrunners in respect to the Offering and Listing (the “Joint Global Coordinators”). Clarksons Platou Securites AS and Skandinaviska Enskilda Banken AB (publ) are acting as Joint Bookrunners in connection with the Offering (together with the Joint Global Coordinators, the “Managers”).

Advokatfirmaet Thommessen AS is acting as legal counsel to the Company, while Advokatfirmaet Wiersholm AS is acting as legal counsel to the Managers, in connection with the Offering and Listing.

Subject to receiving the relevant approvals from the Oslo Stock Exchange, as well as prevailing equity capital market conditions, the Company is expected to have its first day of trading on Euronext Growth Oslo in Q4 2021. Further announcements relating to the Offering and Listing, including the number of Offer Shares to be offered and the indicative price range in which such Offer Shares will be marketed (if any) will be made in due course.