REFINANCING UPDATE, SUMMONS TO BONDHOLDERS' MEETINGS IN DOF SUBSEA AS

As previously reported in DOF Subsea AS' ("DOF Subsea" or the "Company") financial report for Q2 and Q3 2019, the DOF Subsea Group (the "Group") experience that regular financing and refinancing has been challenging.  The Group has an order backlog of approximately NOK 14 billion per 30 September 2019. The market has improved slightly, and the Company has a higher EBITDA compared to last year. However, the current EBITDA is still not sufficient to cover the Group's current amortisation profile.  
 
DOF Subsea is in a process to negotiate a long-term financing solution, with a financial structure that is aligned with the current market.  
 
The Company is negotiating with its banks and has a conditional commitment from its largest indirect shareholder Laco AS to, either directly or indirectly, subscribe for NOK 200 million of new cash equity, subject to agreement with banks and bondholders. The new equity is expected to be raised through a rights issue in DOF ASA to be implemented in January 2020 with expected gross proceeds of between NOK 200 million and NOK 500 million. The detailed terms of the rights issue have not yet been determined. DOF ASA will in turn inject new equity in the amount of NOK 200 million in DOF Subsea.
 
The key terms of the discussed new bank facilities are:
    - All bank facilities in consolidated companies are merged to one new USD 680 million facility with maturity in December 2023.
    - With the new facility, annual amortisations are reduced and this represents a reduction in annual amortisations of 66% average over the first 3 years.
    - Interest margins largely unchanged
    - New covenants to fit the current market situation.
 
In respect of the Company's outstanding bonds, the Company proposes, as part of the solution, a structure whereby the bonds are extended beyond the maturity of the new bank facility.  
    - DOFSUB07 - extended to 29 December 2023
    - DOFSUB08 - extended to 14 August 2024
    - DOFSUB09 - extended to 27 December 2024
 
Please find enclosed Summons to Bondholders' Meeting (the "Proposal") and a Company presentation. The Company has received indication that 62% of DOFSUB08 voting bonds and 47% of DOFSUB09 voting bonds will support the Proposal.  
>>> Summons to Bondholders' Meeting (PDF)
>>> DOF Subsea Group Bond presentation (PDF)
 
The Issuer has engaged ABG Sundal Collier ASA and Pareto Securities AS as its financial advisors (the "Advisors") with respect to the Proposal. Accordingly, Bondholders may contact ABG Sundal Collier ASA at +47 22 01 61 66 or Pareto Securities AS Fixed Income Sales at +47 22 87 87 70 for further information.
 
 
For further information, please contact:  
CEO Mons Aase, tel. +47 91 66 10 12  
CFO Jan Nore, tel. +47 48 09 46 99  
SVP Marianne Møgster, tel. +47 99 30 69 16

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