Summons to bondholders’ meeting

This article originates from the news archive of Det norske.

18. March 2015

Det norske oljeselskap ASA (“DETNOR”) today summoned to a bondholders’ meeting in its DETNOR02 bond loan to request certain amendments to the bond agreement.

The proposal to bondholders includes, inter alia, an exchange of the adjusted equity ratio covenant currently in the bond agreement for a leverage ratio covenant and interest ratio covenant, to harmonise the financial covenants with the company’s bank facility (RBL) agreement.

As compensation, bondholders are offered a one-time consent fee of 1.00 percent of the face value of the bonds, increased coupon by 1.50 percent per annum to 3-month NIBOR plus 6.50 percent per annum. The bondholders are also offered a one-off option for each bondholder to sell all its bonds back to Det norske at 101 percent of par plus accrued interest.

In connection to this, the company has obtained an unsecured NOK 1.9 billion revolving credit facility from Nordea. The purpose of the facility is limited to acquiring bonds under this amendment.

For further information, please see the attached summons to the bondholders’ meeting: Summons DETNOR02