DOF Subsea Refinancing Update

DOF Subsea previously reported they approached banks, bondholders, and shareholders in a process to negotiate a long-term financing solution aligned with the current market.

The proposal as outlined in the Summons to Bondholders’ Meetings dated 5 December 2019 was approved by a necessary majority of Bondholders in all three bond issues, after the Company undertook not to implement the Proposal until certain changes which have been accepted by the Company have been approved by the bondholders in each of DOFSUB07, DOFSUB08 and DOFSUB09. These changes, once approved, will update and supersede the Proposal. The deferral of the NOK 100 million scheduled instalment that was due under DOFSUB07 today has become effective in accordance with the terms of the Summons.

For the DOFSUB07 bond, the changes include a 5% PIK Interest and a call option at 100% of the nominal amount at any time (vs the Proposal with increasing call option prices). The DOFSUB07 bond shall be redeemed at 100% at maturity. For the DOFSUB08 bond the maturity date will be extended to January 2025 (vs August 2024 in the Proposal) and for the DOFSUB09 bond the maturity date will be extended to May 2025 (vs. December 2024 in the Proposal). Laco AS has also agreed to convert its indirect holding (through Møgster Mohn Offshore AS) of approx. NOK 60m in nominal value of DOFSUB 07 bonds into shares in DOF ASA, and the Company has agreed to cancel its treasury bonds. Further details of the changes are included in the attached schedule.

These changes will be implemented through new bondholder meetings in DOFSUB07, DOFSUB08 and DOFSUB09. The Ad-Hoc group of bondholders in DOFSUB07 and major holders of DOFSUB08 and DOFSUB09 bonds have given their pre-approval to these changes, which will be formalized through follow-up bondholder meetings in January 2020.

(NOK 1 = EUR 0,10)