Floating wind firm Hexicon secures additional financing from Nuveen

Hexicon chief executive Marcus Thor said, “This additional financing provides us with further funding to continue the development of our priority projects and is an important step in our ongoing financing activities.

“Our immediate focus is on advancing MunmuBaram ahead of the upcoming Korean offtake auction. With the key permits and grid connection required for participation in place, we are focused on positioning the project for the auction and its next stage of development.”

The company – an early project developer in floating wind focused on opening new markets in deep water, and a technology provider with a patented floating wind design, TwinWind –said the amendment introduces a new tranche, Tranche F, of up to €2.67M.

Of Tranche F, €0.67M will be funded through back-leverage financing provided by certain back lenders, including some of Hexicon’s largest shareholders, one of which is related to the chairman of the board.

The back lenders will also, subject to approval by an Extraordinary General Meeting, have the right to convert their respective portion of the €0.67M financing into ordinary shares in Hexicon at a conversion price of SKr0.25 per share with an additional warrant of SKr0.25 per share at conversion date.

Tranche F represents a further extension of the development loan facility originally entered into on 30 May 2023 and subsequently amended on several occasions. The new tranche is incorporated into the facility through a deed of amendment and restatement. Following the amendment, the aggregate amount under all tranches of the facility amounts to up to €52.42M.

Tranche F is intended to finance corporate overhead and the continued development of Hexicon’s priority projects. The terms and conditions of Tranche F are generally aligned with the structure and commercial terms of the existing facility. The capital under Tranche F will be made available in tranches and is at the discretion of the lender. Tranche F has a maturity date of 31 December 2027.