MPF Corp Secures US $150 Million Bond Loan

MPF Corp Ltd has decided to issue a new bond loan of US $150 million. This represents an increase compared the originally planned US $100 million. The issue was significantly oversubscribed from both Norwegian and international bond investors.

The second priority secured bonds will carry a coupon of 3 months Libor + 6.75%. The loan will have installments of US $10 million in 2009 and US $10 million in 2010, while the remaining loan amount of US $130 million will mature in September 2011.

The proceeds from the loan will be used for partial financing of the first Multi Purpose Floater (MPF 1) with expected delivery in December 2008.

The Board of MPF is very pleased with the reception the Company has received so far in the capital markets. Following this bond issue, MPF has now secured a total of US $425 million from Norwegian and International institutional and private investors. The remainder of the MPF 1 construction cost is expected to be financed through bank loans at a later stage.

The bond issue is subject to finalization of loan documentation. Settlement is expected to take place on or around September 20, 2006.

The bond issue was managed by Pareto Securities ASA


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