Agreement on restructuring of Solship Invest 3 AS and its subsidiaries

Reference is made to the stock exchange announcement July 12th, 2018, in which it was informed that Solship Invest 3 AS and its subsidiaries ("SI-3") had entered into an agreement with its major financial creditors to postpone instalment and interest payments until July 20th, 2018.

SI-3 has today entered into an agreement with its financial creditors for the financial restructuring of SI-3 (the "Financial Restructuring").

The Financial Restructuring includes a deferral of scheduled instalments, interests and bareboat payments until December 31st, 2019 in a total amount of approximately USD 48 mill. The Financial Restructuring also entails suspension of the majority of financial covenants in the same period.

As part of the Financial Restructuring, SI-3 will be provided a loan from Sterna Finance Ltd. in the amount of USD 27 million, which shall be applied for general corporate purposes in SI-3.

Completion of the Financial Restructuring grants SI-3 a sufficient runway to meet the current market challenges.

"We are very satisfied that we have been able to come to an agreement with the lenders, and for their continued support to the Solstad Farstad group. The market is still challenging, but there are signs of improvement which we expect will be strengthened further on the basis of a continued stable, high oil price”, says Lars Peder Solstad, CEO of Solstad Farstad ASA.

The Financial Restructuring is subject to customary conditions to be satisfied within August 31st, 2018.

Skudeneshavn July 20th, 2018

Contacts
Lars Peder Solstad, CEO at +47 91 31 85 85
Anders Hall Jomaas, CFO at +47 40 04 29 18

Solstad Farstad ASA
www.solstadfarstad.com

This information is subject of the disclosure requirements according to the Norwegian Securities Trading Act section §5-12

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Philosophy, Objectives and StrategiesSolstad Offshore ASA’s (SOFF) philosophy is to run a profitable and integrated shipping company with high specification vessels in its market segment, using owned or chartered vessels. The core business is to offer services to petroleum related offshore activities.The Company aims to be a significant player and offer a wide range of services based on high quality vessels, equipment and maritime personnel with extensive experience. In the North Sea the aim remains to be one of the heavy weights in the industry, and internationally, a major player in deep waters, subsea- and construction related activities. Based on extensive market knowledge and maritime experience within the offshore industry, SOFF will continuously seek for profitable investments in areas closely related to the core business. The Company continues to focus on Health, Safety and Environment (HSE) as well as profitability and aims to meet the targets set in these areas. The most important target within HSE is to avoid injury to personnel and equipment, and any uncontrolled spillage from the vessels. SOFF’s strategy is to be customer-focused and deliver high quality services in accordance with customer demands and furthermore to actively develop services in close co-operation with existing and new customers. In general, the Company manages the total operation of the vessels including freight, crewing and technical management. The Company will evaluate where it is possible to operate cost effective operations with an optimal return on capital employed, in co-operation with suppliers and clients, particularly with a view to long-term strategic co-operations. This co-operation is important with regards to both risk and capital injection.

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