Norse Energy Announces USD 8.0 million Bond Repurchase
22 August 2011
Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) announces that its US subsidiary, Norse Energy Holdings, Inc., has purchased USD 8.0 million nominal value of the Company’s NEC 02 bonds in open market purchases at a discount from par. The Company will record an approximately USD 2.4 million gain on the early extinguishment of debt as a result of the transactions after the recognition of unamortized bond issuance expense primarily related to the NEC K warrants.
“The reduction in debt and gain from the transactions bolsters the Company’s equity ratio in the short term and allows the Company time to continue pursing ongoing asset sales processes and other alternatives to strengthen the balance sheet in the longer term” said Mark Dice, Chief Executive Officer.
On 15 August the Company announced that it was in discussions with its bondholders regarding an equity covenant waiver in its bond agreements and/or the conversion of some or all of its bond debt into new equity. These discussions are ongoing. The Loan Agreements for NEC03, NEC04 and NEC05 bonds include covenants whereby NEHI is to maintain equity of minimum USD 36 million and an “Equity to Capital Employed Ratio” of at least 30%.
Norse Energy has total contingent resources of 3.9 TCF (~700 MMBOE) at the end of 2010. The Company has a significant land position of 180,000 net acres in New York State.
IMO and FWIW.
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