The loan, which has a term of five years, carries a coupon of three months NIBOR + 5.0% payable quarterly in arrears. The loan includes a call option whereby Rocksource has the option to redeem the loan before maturity. The settlement date is May 4, 2007. The bond issuance is subject to finalized loan documentation and approval of the loan documentation by the Trustee (Norsk Tillitsmann ASA).
Rocksource is continuously evaluating the capital structure with the aim of having an optimal mix of equity and debt capital to reduce the Group's cost of capital. The recent bond issue concludes the work on the capital structure starting with the bank loan facility of NOK150 million related to exploration on the Norwegian Continental Shelf (NCS), and the equity issue of NOK78 million, both completed in March.
The completed financing activities allow Rocksource to pursue its growth strategy, including:
Tommy Sundt, CFO of Rocksource ASA, said: "I am very pleased to see that we have concluded these steps in securing a sound capital structure and the necessary financial capabilities to support our ambitious growth strategy."
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