Noreco successfully completes new bond issues
(Thomson Reuters ONE) - Stavanger, 19 October, 2009: Norwegian Energy Company ASA ("Noreco"or "the Company" - OSE:NOR) has successfully completed two new bondissues totaling NOK 2 billion. The proceeds will be used to refinancethe existing bond loans NOR01 and NOR02. This transaction furtherextends Noreco's financial capacity and reduces the borrowing costfor the company.- We are very pleased with the interest among both Norwegian andinternational investors for the new bonds. The successful bondrefinancing and our recent NOK 1.2 billion equity issue significantlyimproves our financial capacity and gives us a solid foundation forvalue creation from our extensive asset portfolio, says CEO ScottKerr.The two new bond loans (the "New Bonds") will be NOK 750 million forthe 3 year bond and NOK 1,250 million for the 5 year bond. The NewBonds were significantly oversubscribed, and they were placed in thelower 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 Fixedrate bond. The New Bonds are bullet loans with no installments.Settlement Date for the New Bonds will be 20th November 2009. Anapplication will be made for the New Bonds to be listed at Oslo Børs.- This refinancing extends the maturity of the loans, reduces theborrowing costs and puts in place a leaner covenant structure whichgives the company more flexibility, says Scott Kerr.Following the successful bond issues, the two existing bond loansNOR01 (NO 001037906.8) and NOR02 (NO 001037907.6) totaling NOK 2,240million (together the "Existing Bonds") will be called according tothe applicable loan agreement at 103% of par value, and a notice forearly redemption of these loans in their entirety will be filed withthe bondholders. Investors in the Existing Bonds subscribing in theNew Bonds will be taken out from the Existing Bonds at the callpremium at the Settlement Date for the New Bonds, while the remainingamount under the Existing Bonds will be redeemed on or about 1December 2009 at the call premium (the exact date to be set by theTrustee).Pareto Securities has acted as Sole Lead Manager for the new bondissue and BNP Paribas, First Securities and SEB Merchant Banking haveacted as Co-Managers.Contacts:Scott Kerr, CEO (+47 99 28 38 90)Einar Gjelsvik, Vice President Strategy & IR (+47 99 28 38 56)This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 19.10.2009 - 08:52 Uhr
Sprache: Deutsch
News-ID 7049
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