Reference is made to the press release of August 5, 2002 regarding delayed delivery of Eirik Raude from the Halifax Shipyard and the proposed financing. The Board proposes to adjust the terms of the financing as follows:
- The amount of the three year mandatory convertible bond (New Bonds), having zero coupon with no interest or installments, to be increased from US $25 million to US $35 million (tranche A). The conversion price remains unchanged at NOK 3.50 per share.
- The number of warrants each shareholder or existing bondholder (with the right to conversion) subscribing for New Bonds may receive, is changed from one warrant for every two shares to one warrant for every one share. The new terms also provide the warrant holder the conditional right to subscribe for one share at NOK 1 per share compared to NOK 2 per share previously announced.
- The relevant terms of the conversion of the short term financing (tranche B - max US $52.9 million), the conversion of convertible bonds (tranche C - max NOK 200 million) and the subsequent issue (tranche D - max USD 10 million), shall be amended accordingly.
On the basis of the terms referred to above, the Company has received subscriptions for USD 35 million in Tranche A. As of writing, the Company has received requests for conversion of US $32 million in Tranche B.
Accordingly, the extraordinary general meeting called on August 21st, 2002 is cancelled. The Board will call a new extraordinary general meeting expected to be held on August 23rd, 2002, for the purpose of obtaining the necessary approvals from the Shareholders. The change of terms will be outlined in the notice to the EGM.