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NORECO Stavanger, 17 June, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), Noreco has entered into an loan agreement to increase its existing reserve based lending facility to 325 mill US$. As part of the agreement, Noreco has extended its oil price hedging program to protect oil price through put option at 75 $/bbl from Q2 2009 through Q1 2011.
- A month ago we announced that we had entered into a term sheet to increase our existing reserve based lending facility and refinance our most expensive bond. The parties have now signed the final agreement, says Scott Kerr, CEO of Noreco.
Facts about the agreement: Noreco has entered into a restated and amended reserve based borrowing base facility agreement with a group of international banks led by BNP Paribas. The new agreement increases the facility from 155 mill US$ to up to 325 mill US$, and can be further increased to 350 mill US$. In addition to the 69 mill US$ currently drawn under the existing facility, Noreco is contemplating drawing an additional 207 mill US$, which will be used to refinance the 12.00 per cent Geopard A/S Callable Bond Issue 2006/2012 and part finance the acquisition of Talisman Oil Denmark Limited. The interest coupon of the new facility is floating, currently at around 5%. The final maturity date of the new facility is 31 December 2013, which is an extension of 1 year compared to the existing facility. As part of the loan agreement, Noreco has extended its oil price hedging programme to protect oil price through put option at 75 $/bbl from Q2 2009 through Q1 2011.
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856) www.noreco.com
