Sinvest Completes Financing of Rig Program

Sinvest ASA has, through its wholly owned subsidiary DDI Holding AS (DDI), decided to issue two new Bond loans, and Pareto Securities ASA has been given the mandate as arranger for these new issues, which are now fully subscribed. The first bond loan is USD denominated, with a loan amount of US $160 million, coupon of 6 months Libor plus 4.75 per cent p.a. The second bond loan is NOK denominated, with a loan amount of NOK 400 million and a fixed rate of 10 per cent p.a. The USD-bond loan will be secured by first priority mortgage and the NOK-bond loan will be secured by second priority mortgage, in DDI's seventh and eight jack-up rigs, which are to be delivered from the yards in Singapore during the third quarter 2008 and first quarter 2009 respectively. Settlement date for the bond loans is expected to be March 15, 2006, and the Bond loans will mature in March 2012. DDI will have the option to redeem the Bond loans in March 2009 at 108% of par value.

The company is by this financed through the complete construction period, when at the end, the company will have had delivered 8 jackup rigs in total. Two of the company's rigs will be delivered in April and one in October of this year. This is at the same time as the company is experiencing a strong market with undersupply of high specification Jackups of this type.