Noreco refinances bond

Norwegian Energy Company ASA (Noreco – OSE:NOR), Noreco has received pre-acceptances from the majority of the bondholders for a proposed refinancing of the existing NOK 2,240 million bond (OSE:NOR01 & NOR02). The proposal entails a new amortization profile and extension of parts of the loan, which will enhance Noreco’s financial position.

-Noreco is very pleased to get the majority of bondholders’ support for a refinancing proposal which will create a strong and stable long term financial platform for the company, says CEO Scott Kerr.

Noreco’s proposal is to implement an amortization profile whereby NOK 1,000 million is repaid within the current maturity date of July 2010 through two NOK 500 million instalments (in December 2009 and July 2010). These payments will be redeemed at 103 percent of par value. 50 percent of the remaining loan outstanding in July 2010 will subsequently be repaid in July 2011 and the remaining loan in April 2012, both redeemed at 107 percent of par value. Further details regarding the proposal are set out in the attached summons for the bondholders’ meeting.

A bondholders meeting is called for to vote for the proposed changes to the Loan Agreement and will be held on 20 March 2009. Noreco has already received pre-acceptances from over 50% of the bondholders.

– We believe that the proposal is attractive for all stakeholders and provides Noreco with the financial stability for further developing the company into a leading independent North Sea focused oil and gas player, says Kerr.

Pareto Securities AS acts as financial advisor in connection with the transaction.