There was substantial over-subscription in the underwriting syndicate. The subscription price recommended by the Board of NOK 7.50 per share will be applied both in the private placement and in the subsequent issue reserved for the other shareholders.
The underwriting is conditional upon additional debt financing of US $20 million from PanCanadian Petroleum (and/or affiliated companies), and approval from the extraordinary general meeting to be held on November 21, 2001.
The private placement will be completed as soon as possible. In order for all shareholders to be able to subscribe, a subsequent issue will be organized, reserved for the shareholders who were not invited to participate in the private placement. Dependent upon the decision of the general meeting, the subsequent issue will be directed towards shareholders registered in the shareholders' registry (VPS) as of November 27, 2001. This means that the shares of Ocean Rig be will traded without the right to participate in the subsequent issue from November 22, 2001.
The convertible bonds to be issued in the private placement and the subsequent issue, will be sub-ordinated to the existing convertible bonds, and not rank pari passu as previously announced. The loan of US $20 million which the Company currently is negotiating with PanCanadian Petroleum, will mature at the delivery of "Eirik Raude". The debt financing is therefore a short-term loan, which does not require consent from the bondholders in the convertible loans already issued by the Company. The condition in the underwriting agreement relating to approval from the bondholders in the convertible loans is therefore waived.
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