Noreco: Successful Closing of USD 1.1 Billion Reserve Based Lending Facility

OSLO, Norway, May 5, 2021 /PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or the "Company") announces the successful closing of its new USD 1.1 billion Reserve Base Lending facility (the "Facility"), replacing the Company's existing USD 900 million RBL. Effective today, the Facility matures in 2028 with a seven-year term that will amortize from the second half of 2024.  

The margin payable under the Facility remains in line with the borrowing cost of the existing RBL and the Facility also includes an Accordion option of up to USD 400 million that may be used to support potential future commercial opportunities. 

Noreco's cash drawings under the existing RBL are USD 751 million, while the Facility has cash drawing capacity of USD 1.0 billion based on the current Borrowing Base.

In line with Noreco's commitment to ESG, the Facility will include KPIs based on emissions intensity and renewable electricity generation that will progressively adjust the margin payable through the life of the Facility.  

"The successful completion of our previously announced RBL refinancing is an important milestone for Noreco, ensuring the Company continues to have a strong capital structure and remains fully-funded to deliver the Tyra Redevelopment project.  The new, enlarged Facility demonstrates the quality, longevity and value of our asset base, while also providing a mechanism to economically incentivise the meeting of our ESG objectives.  The existing and new lenders in our RBL bank group have reiterated their long-term view of Noreco, and this confidence in our ability to deliver value for our stakeholders is highly appreciated," said Euan Shirlaw, Chief Financial Officer in Noreco.

Contacts: 

Euan Shirlaw, CFO 
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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