Sevan Marine Signs $400 Million Credit Facility

Sevan Drilling has signed an agreement for a US$400 million senior debt project finance facility for the Sevan Deepsea Driller vessel with Mandated Lead Arrangers GE Energy Financial Services, GE Transportation Finance and DVB Group Merchant Bank. The facility, fully underwritten by the lead arrangers, is partially guaranteed by Garantinstituttet for eksportkreditt (GIEK - Norwegian Export Credit Agency) and is in the process of being syndicated to a limited group of international banks by GE Capital Markets.

The debt facility is structured as a limited recourse financing consisting of pre-completion construction financing of up to US$250 million that converts into a 6-year US$350 million amortizing term loan and a US$50 million revolving loan following delivery of the Sevan Driller to Petrobras Americas Inc. With this facility and the funding raised by Sevan Drilling AS in December 2006 under a NOK 1000 million bond issue, the Sevan Driller unit is fully financed.

"We are pleased to announce this bank facility, which completes the financing of the advanced deepwater drilling unit Sevan Driller, based on Sevan's own proprietary technology," says Jan Erik Tveteraas CEO, Sevan Marine ASA.

"This second, major financing for Sevan co-led by GE's energy and transportation financial services businesses further demonstrates our support for Sevan's innovative technological solutions for the offshore industry, a strategic growth area for us," said Brandon Blaylock, Executive Vice President and head of GE Transportation Finance. "We value the Sevan relationship and look forward to meeting its future financing needs," added Matt O'Connor, Managing Director and global leader of debt finance for GE Energy Financial Services. "This financing represents a significant milestone in the development of our energy debt finance business in Europe, and demonstrates the full range of the debt services we can provide for customers there."

"The Sevan Driller clearly demonstrates the versatility of the Sevan technology. We look forward to new exciting applications of this technology and aim to be there to support Sevan once again as and when needed," said Sven Dybdahl, Head of DVB's Floating Production Group.