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Petrolia Drilling Reference is made to the press release sent Thursday 29 May regarding a new bond issue in Petrolia Drilling ASA (the "Company"). The bond issue was oversubscribed, and the Board of Directors of the Company is pleased with the response from both Norwegian and international institutional bond investors.
The bond issue will be NOK 500 million with a coupon of 12.00% p.a. with semi-annual interest payments. The bonds will be unsecured. Settlement date is expected to be ultimo June 2008, and the final maturity date will be in June 2012.
The net proceeds from the new bond issue will be used for (i) early redemption of the existing PDR03 bond (NOK 250 million outstanding) according to prevailing call options under the PDR03 bond, and (ii) for general corporate purposes which may include investments in other companies / assets within the oil/offshore sector.
The bond issue is subject to (i) finalized loan documentation and approval of loan documentation by the Trustee, Norsk Tillitsmann ASA and (ii) early redemption notice sent to the Trustee for the outstanding NOKm 250 bond issue (ISIN: NO 001030199.7) (PDR03). Notice regarding early redemption of PDR03 will be sent to the Trustee shortly.
In the Company's opinion the new bond issue will increase the Company's flexibility and strengthen the Company's long term financing.
The bond issue was managed by Pareto Securities AS.
For further information, please contact : Mr. Lars Moldestad: phone +47 906 99 197.
