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Regulatory press release

NORECO: Noreco: Underwritten RBL Increase to USD 1.1 Billion and Maturity Extension

BlueNord
Read the release

Oslo, 2 February 2021: Norwegian Energy Company ASA ("Noreco" or the "Company") announces that it has entered into an underwriting agreement with five banks for a USD 1.1 billion Reserve Base Lending facility (the "RBL" or the "facility") with a seven-year term and maturing in 2028.  As a result of this, the Company will have a strong financial position as it progresses the Tyra Redevelopment project with amortizations scheduled to commence from the second half of 2024.

The USD 200 million increase in the RBL facility and two-year maturity extension will further reinforce the Company's capital structure and is underpinned by a borrowing base that is expected to provide cash drawing capacity of USD 1.0 billion at close.  In addition, Noreco has established a link in the RBL to ESG targets on emissions intensity reduction and power from renewables that will support progression of the Company's ESG strategy.

The USD 1.1 billion facility will be fully underwritten by BNP Paribas, Deutsche Bank, ING Bank, Lloyds Bank and Natixis.  

"I am pleased to announce that we now have in place an underwritten agreement to increase and extend our RBL facility, ensuring the Company has a solid financial platform with significant liquidity, a robust capital structure and enhanced commercial flexibility.  We continue to benefit from a strongly supportive RBL bank group, and today's announcement demonstrates the long-term value proposition of Noreco's participation in the Danish Underground Consortium (the "DUC") and further evidences the Company's proactive approach to enhancing this position," said Euan Shirlaw, Chief Financial Officer at Noreco.
 

***

 

Contacts: 

Euan Shirlaw, Chief Financial Officer 
Phone: +44 7979 690622
Email: es@noreco.com

Cathrine Torgersen, EVP Investor Relations & Communications 
Phone: +47 91 52 85 01 
Email: ct@noreco.com
 

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