Farstad Shipping ASA – Farstad restructuring completed – update on the contemplated repair issue

Ålesund, Norway, 9 March 2017 – Reference is made to previous announcements concerning the restructuring (the "Farstad Restructuring") of Farstad Shipping ASA ("Farstad" or the "Company") as first announced on 6 February 2017, and latest the announcement of 7 March 2017.

Farstad is pleased to announce that all conditions required for completion of the Farstad Restructuring have now been fulfilled and that the Farstad Restructuring was completed today.

The reduction of the par value of the Company's shares and the share capital increases pertaining to the issuance of shares (the "Private Placements Shares") to different stakeholders in the Farstad Restructuring was today registered in the Norwegian Register of Business Enterprises. Following such registration, the share capital of the Company is NOK 236,034,176.85, divided into 4,720,683,537 shares, each with a par value of NOK 0.05.

The Private Placements Shares are issued with a separate ISIN number, and will subsequently be transferred to the ordinary ISIN of the Company in the VPS system and be admitted for listing on the Oslo Stock Exchange upon the approval of an EU compliant prospectus by the Norwegian Financial Supervisory Authority (the "Prospectus"). Delivery of the Private Placements Shares to the bondholders is expected to take place on or about 13 March 2017 and delivery to other subscribers is expected to take place on or about 10 March 2017. First day of listing of the Private Placements Shares is expected on or about 17 March 2017. The record date for the conversion of the bonds (in the Company's bond issues with ISIN NO 001 0679871 and NO 001 0635964) to shares was 9 March 2017. Last day of listing of the bonds will be 9 March 2017.

The completion of the Farstad Restructuring comprises the full conversion to equity of the outstanding debt under the Company's bond issues with ISIN NO 001 0679871 and NO 001 0635964, the conversion to equity of certain existing debt to senior lenders in an amount of NOK 940,000,000, the conversion to equity of a claim arising as a result of the release of interest under certain debt owed to senior lenders in the amount equivalent to net present value of NOK 271,000,000, the conversion to equity of certain claims held by F-Shiplease AS, a subsidiary of Ocean Yield ASA, under certain bare boat charters with the Company in the amount of NOK 70,000,000, the conversion to equity of a claim arising as a result of the release of certain interest owed to F-Shiplease AS in the amount equivalent to net present value of NOK 90,858,516, and the issuance of new shares in the amount of NOK 600,000,000 to Aker Capital AS, Hemen Holding Limited, certain bondholders and Tyrholm & Farstad Invest AS, all as further described in the stock exchange announcement dated 6 February 2017.

As announced on 3 March 2017, the Company's Board of Directors has been authorised by the Company's extraordinary general meeting of shareholders to carry out a repair issue for a total subscription amount of NOK 50 million and with a subscription price per share of NOK 0.35. The repair issue will be directed towards eligible shareholders and bondholders as per the end of 10 February 2017, as recorded in the VPS on 14 February 2017 who did not receive allocation of shares in the private placement announced fully subscribed on 13 February 2017. For further details on the repair issue, please refer to the key information on the repair issue provided in the Company's stock exchange announcement on 13 February 2017. The Company will launch the repair issue immediately after the approval of the Prospectus. It is expected that the subscription period for the repair issue will commence during next week, with an expected duration of approximately one week.

The contemplated combination of Farstad, Solstad Offshore ASA and Deep Sea Supply Plc will as previously communicated move forward separately.

For further information, please contact:

CEO Karl-Johan Bakken – tel. +47 901 05 697

CFO Olav Haugland – tel. +47 915 41 809

Farstad Shipping’s fleet currently consists of 56 vessels (27 AHTS, 22 PSV and 7 SUBSEA). The company’s operations are managed from Aalesund, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of 1,500 employees engaged onshore and offshore. The company’s strategy is to be a leading quality provider of large, modern offshore service vessels to the oil industry.

www.farstad.com  

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