Norse Energy bondholders approve restructuring, transfer of bonds

By Angela McDaniels

Tacoma, Wash., Dec. 17 - Norse Energy Corp. ASA said it received holder approval to restructure all of its outstanding bonds, including its 10% senior unsecured bonds due 2010, 6½% bonds due 2011 issued with warrants, 9½% bonds due 2010, 11½% callable bonds due 2012 and 10.707% callable bonds due 2012.

Bondholders voted on the restructuring at a meeting on Thursday, according to a company news release.

The company is seeking to separate itself into two companies. As part of this process, it sought and received holder approval to transfer its obligations under the 10% bonds to New Brasil Holding ASA and the remaining bonds to Norse Energy Holdings Inc.

Norse Energy said that as part of the restructuring, the principal repayments of the bonds will be reduced by roughly $36 million in 2010 and by $50 million in 2011. The repayments will total roughly $24 million in 2010, $25 million in 2011, $57 million in 2012, $42 million in 2013 and $10 million in 2014.

In exchange for their approval, the bondholders received security in the form of a pledge over shares in subsidiaries and intercompany loans, early repayments of 15% of all outstanding bonds, new Norse Energy Holdings warrants and higher coupons.

The coupon for each series of bonds was increased by 200 basis points. The coupon will step up further to 13½% in July 2010 for the 10% bonds and the 9½% bonds, in July 2011 for the 6½% bonds and in September 2012 for the 10.707% bonds.

Norse Energy is an oil and gas exploration and production company based in Oslo.

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