Norway: Sevan to Get $230 M for FPSO Sevan Voyageur Modifications

Sevan and ING Bank have agreed on a term sheet, which is subject to final credit approval and documentation, for a secured bank facility of USD 230 million for FPSO Sevan Voyageur which will replace the existing 1st lien financing of USD 150 million.

The net proceeds of the refinancing completes the funding of the installation of a gas compression plant on FPSO Sevan Voyageur to upgrade the unit for operation on the Huntington field.

As announced on May 3, 2010, Sevan and E.ON Ruhrgas UK E&P Limited have entered into a Letter of Intent for the potential use of the FPSO Sevan Voyageur as the production unit for the Huntington field. The proposed charter party will be for a firm fixed term of five years with extension options with an estimated contract value of USD 535 million for the fixed term.

The agreed term sheet is conditional upon a satisfactory agreement being reached with the bondholders in ‘Sevan05’ bond which has a 2nd lien security over the FPSO Sevan Voyageur. Pareto Securities has been mandated to evaluate the opportunities relating to the existing bond.

The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs – Continuing Obligations.

Sevan Marine ASA is specializing in owning, operating and licensing FPSOs and drilling units, based on its patented cylindrical floater technology. Sevan Marine ASA is listed on Oslo Børs with ticker SEVAN.

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Source: Sevanmarine, June 9, 2010: