DNO Signs $100 Million Bond Loan Agreement

DNO signed a loan agreement for a new bond loan facility in an amount up to US $100 million. The new facility (FRN DNO ASA Open Bond Issue 2005/2012 with Call, ISIN NO 001 027052.3) has been signed with Norsk Tillitsmann ASA as trustee for the bondholders.

The bond loan facility is structured as a senior unsecured USD loan, with seven years maturity and floating interest rate based on three months Libor + 3.5%. The initial issue under the loan facility is for an amount of US $60 million, with funding on June 6, 2005. The loan is issued at par (100%). DNO has a call option after three years at 103%.

DNO has applied for listing of the new bond loan on the Oslo Stock Exchange.

Proceeds from the new bond loan will secure long-term financing of investments in exploration and development of DNO's extensive portfolio of petroleum licenses, as well as refinancing of short-term debt. The new USD-based loan will also reduce foreign currency risk exposure related to DNO's balance sheet and revenues.

Mandated arrangers of the bond loan facility are Fearnley Fonds ASA and Straumur Investment Bank in Iceland. The initial issue has been sold to investors in Iceland, Norway and the UK.


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