I.M. Skaugen Contemplating New Bond Issue (Norway)

I.M. Skaugen SE is contemplating a new senior unsecured bond issue with final maturity in March 2013. The contemplated minimum borrowing amount is the equivalent of USD 60 million, however not more than USD 70 million.

An approximately equal amount of debt in IMSK08 with maturity in July 2011 and IMSK 05 with maturity in September 2011 will be repurchased. Remaining debt maturity in 2011 after this transaction will be zero.

The issue is a floating rate bond with a coupon margin of 6.00% above NIBOR. It is unsecured and with other relevant covenant terms similar to our previous bond issues. An application will be sent for listing of the bonds on the Oslo Stock Exchange.

The repayment obligation in NOK will be swapped to USD. Average interest cost (incl. of margin) for all of our outstanding bonds financed now stand at 6.1% given current USD interest rates.

First Securities AS has been retained as sole arranger of the contemplated bond issue.

[mappress]

Source: I.M. Skaugen SE, March 2, 2011;