Monitor Oil Closes $200M Credit Facility

Monitor Oil PLC said that its wholly-owned subsidiary Monitor Single Lift 1, Ltd. ("MSL 1") along with a wholly-owned U.S. subsidiary of MSL 1 (together, the "Borrowers") have closed a US$200 million credit facility arranged by Credit Suisse. The credit facility consists of a US$120 million first lien tranche and a US$80 million second lien tranche (together, the "Credit Facility").

The Credit Facility is available to finance the costs of construction, completion, testing, transportation and commissioning of a new semi-submersible single-lift vessel ("SLV") under contract for construction in China by Yantai-Raffles Shipyard. Under the terms of the Credit Facility, the Borrowers are initially able to access US$20 million prior to raising additional equity. Commenting on the closing of the Credit Facility, Monitor's Chairman, Bjorn Aaserod, remarked that "The closing of the credit facility marks the achievement of an important milestone for Monitor, both for the company's development in general as well as for the singlelift vessel project."

The maturity date for the first lien tranche is 11 January 2014 and the maturity date for the second lien tranche is 11 January 2015. The initial interest rate on the first lien tranche is LIBOR plus 5.50%, and the interest rate on the second lien tranche is LIBOR plus 12.00%. The Credit Facility is secured by security interests in certain contractual rights and assets of MSL 1. The Credit Facility is also guaranteed by Monitor and certain of its subsidiaries.

In connection with the transaction, Monitor issued warrants to purchase an aggregate of 3,762,481 common shares to the lenders under the second lien tranche at an exercise price of $0.01 per share. In addition, in lieu of paying Credit Suisse its fee for arranging the Credit Facility, Monitor issued to Credit Suisse a warrant to purchase 3,114,745 common shares at an exercise price of $0.01 per share. The warrants issued to the second lien lenders and Credit Suisse are exercisable, in whole or in part, until 11 January 2012.

Monitor Oil PLC is an oil and gas service company providing (i) oil and gas production solutions, (ii) offshore services and (iii) engineering services.

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