Noreco successfully completes new bond issues

Stavanger, 19 October, 2009: Norwegian Energy Company ASA ("Noreco" or "the Company" - OSE:NOR) has successfully completed two new bond issues totaling NOK 2 billion. The proceeds will be used to refinance the existing bond loans NOR01 and NOR02. This transaction further extends Noreco's financial capacity and reduces the borrowing cost for the company.
- We are very pleased with the interest among both Norwegian and international investors for the new bonds. The successful bond refinancing and our recent NOK 1.2 billion equity issue significantly improves our financial capacity and gives us a solid foundation for value creation from our extensive asset portfolio, says CEO Scott Kerr.
The two new bond loans (the "New Bonds") will be NOK 750 million for the 3 year bond and NOK 1,250 million for the 5 year bond. The New Bonds were significantly oversubscribed, and they were placed in the lower end of the pricing range, giving coupons of 3 months NIBOR + 7.90 % p.a. for the 3 year FRN and 12.90 % p.a. for the 5 year Fixed rate bond. The New Bonds are bullet loans with no installments. Settlement Date for the New Bonds will be 20th November 2009. An application will be made for the New Bonds to be listed at Oslo Børs.
- This refinancing extends the maturity of the loans, reduces the borrowing costs and puts in place a leaner covenant structure which gives the company more flexibility, says Scott Kerr. 
Following the successful bond issues, the two existing bond loans NOR01 (NO 001037906.8) and NOR02 (NO 001037907.6) totaling NOK 2,240 million (together the "Existing Bonds") will be called according to the applicable loan agreement at 103% of par value, and a notice for early redemption of these loans in their entirety will be filed with the bondholders. Investors in the Existing Bonds subscribing in the New Bonds will be taken out from the Existing Bonds at the call premium at the Settlement Date for the New Bonds, while the remaining amount under the Existing Bonds will be redeemed on or about 1 December 2009 at the call premium (the exact date to be set by the Trustee).
Pareto Securities has acted as Sole Lead Manager for the new bond issue and BNP Paribas, First Securities and SEB Merchant Banking have acted as Co-Managers.
Scott Kerr, CEO (+47 99 28 38 90)
Einar Gjelsvik, Vice President Strategy & IR (+47 99 28 38 56)

About Us

Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The company's shares are listed on the Oslo Stock Exchange (ticker NOR). For further information, please visit: