MPF Launches $75 Million Convertible Bond Issue

MPF Corp. Ltd has launched a USD 75 million Convertible Bond Issue. The private placement is managed by Pareto Securities AS and Deutsche Bank AG. The Company also announced that it will seek to amend certain terms under the outstanding 2nd lien bond issue (FRN MPF Corp Ltd Secured Bond Issue 2006/11) in order to facilitate a refinancing of its current construction loan facility with DvB Group Merchant Bank (Asia) Ltd.

Following the recently announced employment contract to Petrobras, MPF Corp has had discussions with its Financial Advisors and Bankers. Based on this, indications have been received indicating that bank financing in an amount of around USD 400 million will be available until delivery of the MPF- 01. Following delivery it is expected that up to USD 600 million will be available in bank financing, however dependent on whether the final contract with Petrobras will be of 3 or 5 years duration. The Convertible Bond Issue and the bond amendments will be an integral part in ensuring that the project becomes fully financed.

Following the announcement of the Petrobras contract the credit risk related to MPF Corp. has been significantly reduced. We believe the package announced today offers a good and flexible financing solution for the company and also good value to our existing and new investors, says CFO Christian L. Holst.

The Convertible Bonds are expected to have a coupon of 9.5 10 % and a conversion price of NOK 25 per share (converted into USD).

The proposed amendments of terms under the FRN MPF Corp Ltd Secured Bond Issue 2006/11 will include (i) increasing the maximum of first priority debt to USD 450 million (ii) the elimination of the two sinking fund repayments of USD 10 million, due in September 2009 and 2010 respectively and (iii) the elimination of minimum down payments on the First Loan in 2009 and 2010.


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