Norske Skog: New securitization financing in place and completed private placement of new shares

Reference is made to the announcement on 18 March 2016 regarding amended exchange offer; equity and liquidity initiatives; trading update and outlook.

Norske Skog has executed a new securitization facility ("NSF") with GSO and Cyrus under which they provide us up to EUR 100 million of funding commitments  secured by  receivables and inventory of the mills of Norske Skog Saugbrugs AS and Norske Skog Skogn AS, the inventory of the mill of Norske Skog Golbey AS and certain collection bank accounts. The proceeds from the NSF will exclusively be used to replace the SpareBank1 Gruppen Finans AS Factoring Agreements and to fund working capital expenses and other operational liquidity needs for the group's mills. The SpareBank1 Gruppen Finans AS Factoring Agreements were secured by the receivables of the mills of Norske Skog Saugbrugs AS and Norske Skog Skogn AS and certain collection bank accounts.

Norske Skog has also received unconditional subscriptions of 63,460,714 new shares at a subscription price of NOK 2.24 in the private placement directed to GSO and Cyrus, in accordance with the announcement on 18 March 2016. The total proceeds of the private placement amounts to NOK 142,151,999.36. The share capital pertaining to the new shares will be registered in the Norwegian Register of Business Enterprises as soon as possible. The newly issued shares cannot be traded on the Oslo Stock Exchange before a listing prospectus has been completed and published, and will accordingly be issued on an ISIN separate from the ISIN of the Norske Skog's listed shares pending completion of the prospectus.

Norske Skog is preparing for a repair offering directed towards shareholders, which did not participate in the private placement. The details of the repair offering have not been determined by Norske Skog and will be communicated in due time. The shares are traded including the right to participate in the repair offering pending further information from the Norske Skog.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Norske Skog
Communications and Public Affairs

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