DNO - SIGNING OF NEW USD 100 MILL. BOND LOAN AGREEMENT
On June 3, 2005, DNO ASA signed a loan agreement for a new
bond loan facility in an amount up to USD 100 mill. The
new facility (FRN DNO ASA Open Bond Issue 2005/2012 with
Call, ISIN NO 001 027052.3) has been signed with Norsk
Tillitsmann ASA as trustee for the bondholders.
The bond loan facility is structured as a senior unsecured
USD loan, with seven years maturity and floating interest
rate based on three months Libor + 3.5%. The initial issue
under the loan facility is for an amount of USD 60 mill,
with funding on June 6, 2005. The loan is issued at par
(100%). DNO has a call option after three years at 103%.
DNO has applied for listing of the new bond loan on the
Oslo Stock Exchange. Loan documentation will be presented
on DNO`s website (www.dno.no).
Proceeds from the new bond loan will secure long-term
financing of investments in exploration and development of
DNO`s extensive portfolio of petroleum licenses, as well as
refinancing of short-term debt. The new USD-based loan
will also reduce foreign currency risk exposure related to
DNO`s balance sheet and revenues.
Mandated arrangers of the bond loan facility are Fearnley
Fonds ASA and Straumur Investment Bank in Iceland. The
initial issue has been sold to investors in Iceland, Norway
and the UK.
DNO ASA, June 3, 2005
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