SSC’s parent company, the Scottish Salmon Company PLC, which is now owned by Faroese salmon farmer Bakkafrost, said the loan deal provides an increased and more flexible funding package to support the company’s objective for growth, as well accommodating the variability in working capital requirements of the business.
Investment in Scotland
In December Bakkafrost announced that it had signed agreements for two fully secured five-year credit facilities together worth €352 million to partly fund the purchase of SSC and to secure “robust, flexible and long-term financing to match the group’s ambitions for organic and strategic growth”.
Members of the group providing the loans include the same three banks that have provided SSC’s credit facility.
Bakkafrost chief executive Regin Jacobsen has previously said that the company wants to grow bigger smolts in Scotland and intends to build a large recirculating aquaculture system hatchery to replace SSC’s 12 freshwater sites.
It also plans investments in farm infrastructure.