DNO Signs New NOK 2 Billion Bond Loan Agreements

On September 16, 2005, DNO ASA signed loan agreements for two new bond loan facilities each in an amount up to NOK 1 billion. The new facilities have been signed with Norsk Tillitsmann ASA as trustee for the bondholders.

The two bond loan facilities are structured as senior unsecured NOK loans, one with seven years maturity and floating interest rate based on three months Nibor + 3.5%, and one with seven years maturity and fixed interest rate based on Nibor Swap + 3.5%. The initial issue under the loan facility with floating interest is for an amount of NOK 300 million, and the initial issue under the loan facility with fixed interest is for an amount of NOK 200 million. There was oversubscription for both loans.

Loan funding will take place on October 12, 2005. The loan is issued at par (100%). DNO has a call option after three years on both loans.

DNO will apply for listing of the new bond loans on the Oslo Stock Exchange. Loan documentation will be presented on DNO's website

Proceeds from the new bond loans will secure long-term financing of investments in exploration and development of DNO's extensive portfolio of petroleum licenses.

Fearnley Fonds ASA has acted as mandated arranger of the bond loan facilities. The initial issue has been sold to both domestic and international investors.

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