Bond issuance of NOK 200 million successfully completed
Rocksource is pleased to announce to have finalised a bond issuance of NOK 200 million. This concludes the next step in the strategy to optimize the capital structure of the company, and secures an optimal fit between the operational and financial strategy.
Rocksource ASA Group (`Rocksource` or `Group`) has closed a 5 year Senior Secured Bond Loan (`the Loan`) through a private placement directed towards Norwegian and international investors. The Loan was fully subscribed with a total loan amount of NOK 200 million. The Arranger of the private placement was DnB NOR Markets.
The Loan has a term of 5 years. The Loan carries a coupon of 3 months NIBOR + 5.0% payable quarterly in arrears. The Loan includes a call option whereby Rocksource has the option to redeem the Loan before maturity. Settlement date is 4 May 2007. The bond issuance is subject to finalized loan documentation and approval of the loan documentation by the Trustee (Norsk Tillitsmann ASA).
Rocksource is continuously evaluating the capital structure with the aim of having an optimal mix of equity and debt capital to reduce the Group`s cost of capital. The recent bond issue concludes the work on the capital structure starting with the bank loan facility of NOK 150 million related to exploration on the Norwegian Continental Shelf (NCS), and the equity issue of NOK 78 million, both completed in March.
The purpose of the completed financing activities allows Rocksource to pursue the growth strategy, including: - Increasing reserves and production in the US through a further drilling campaign. - Maturing existing licenses on the Norwegian- and United Kingdom continental shelves.
- Positioning the Group for coming licensing rounds, including the EM-campaign on the NCS for the APA 2007 and 20th Round. - To further build the organization to qualify as an operator on the NCS. - Increased activity related to international exploration, including licensing rounds and farm-ins.
Tommy Sundt, CFO of Rocksource ASA comments: `I am very pleased to see that we have concluded these steps in securing a sound capital structure and the necessary financial capabilities to support our ambitious growth strategy`.
Oslo, 23.4.2007
Rocksource ASA
Trygve Pedersen
CEO
+ 47 90 09 77 41
Published: 23.04.2007
Contact Information
Address:
Thormøhlensgate 53 D
Postboks 994 Sentrum
N-5808 Bergen
Norway
| Phone: | +47 05369 |
| From abroad: | +47 21 49 32 69 |
| Fax: | +47 55 36 87 98 |
Per Anders Muri
VP Corporate Communications
Phone: +47 91 11 61 21
per.anders.muri@rocksource.com