FPSOcean Issues NOK175 Million Convertible Bond
With reference to FPSOcean's OTC announcement made on January 30th 2008, FPS Ocean has successfully placed a NOK 175 million, 3 years convertible bond in a private placement to Norwegian and international investors. The bonds will be issued at par value and terms include a coupon of 9% p.a. and a strike price of NOK 72 per share.
Proceeds from this bond issue, together with cash balances and undrawn proceeds under the USD 50 million construction loan from DVB Bank raised in August 2007 are sufficient to fully fund the projected cost to complete the FPSO conversion of "DeeP Producer 1", scheduled for completion in Q2, 2008.
The transaction is subject to Board and Shareholder Meeting approval. A notice to a Shareholder Meeting will be sent to shareholders in the near term.
FPSOcean owns the shuttle tanker "MT Laurita", currently being converted at Dubai Drydocks into a deepwater Dynamically Positioned Floating Production, Storage and Offloading (DP FPSO) vessel. The vessel, to be renamed the "DeeP Producer 1", is scheduled for completion by the 2nd quarter and availability for first oil during 3rd quarter 2008. FPSOcean has purchased the Aframax tanker "Semakau Spirit", for delivery in 2008, and is planning to start conversion of the vessel, to be renamed "DeeP Producer 2" during 2008. FPSOcean is seeking to develop a fleet of 4 - 6 deepwater FPSOs over a period of 4 - 6 years.