I'm LongbridgeAI, I can summarize articles.North Energy ASA has invested USD 18.8 million in senior secured bonds of Petrofac Limited, which is undergoing a restructuring to raise at least USD 350 million. North Energy estimates it can invest an additional USD 4.4 million, potentially receiving 330 million new shares and USD 4 million in new bonds. The estimated value of North Energy's holdings could reach USD 25-30 million post-restructuring, subject to final court approval. This announcement is considered inside information under EU regulations.
Reference is made to the Q4 2024 report and the Annual Report for 2024 whereitwas disclosed that North Energy ASA ("North Energy" or the "Company") afteryear-end 2024 has invested in USD 18.8 million of nominal amount in seniorsecured bonds issued by Petrofac Limited ("Petrofac") at an average cash priceof less than 15% of par.
Petrofac is undergoing a comprehensive restructuring aimed at resetting thecapital structure and formalise the legal and operational separation of itsdelivery units. The restructuring process involves raising at least USD 350million in new equity and debt capital. A convening hearing was held on 20March2025 in the Companies Court (the "Court") in London where Petrofac was givenpermission to proceed with the restructuring process. Plan meetings with thestakeholders in the restructuring, where the stakeholders will vote on therestructuring, will be held on 23 April 2025 while the Court hearing tosanctionthe restructuring is expected to commence on 30 April 2025 to run for a periodof up to 2 May 2025. Further information about Petrofac and the restructuringcan be found on www.petrofac.com.
As a senior secured bond holder, North Energy is entitled to invest new moneyinthe restructuring in return for new shares and new bonds. In addition, aportionof its existing secured bonds will also be converted into new ordinary shares.Based on North Energy's debt holding, North Energy estimates that it caninvestapproximately USD 4.4 million in new money and will be entitled to receiveapproximately 330 million new Petrofac shares and approximately USD 4 millionofnominal value in new bonds issued by Petrofac. These figures might be subjecttosome change if and when the restructuring becomes effective.
North Energy's estimated holdings of shares and bonds in Petrofac has a valueofapproximately USD 9 million based on the new equity subscription price in therestructuring, while the total cost (original purchase price for the bondsplusnew money investment) is approximately USD 7 million. However, based on therecent trading range of the Petrofac share price on the London Stock Exchange,North Energy's position would have an estimated value of USD 25-30 million.Notethat if the restructuring is effectuated, the number of Petrofac sharesoutstanding will increase from the current 529 million shares to more than 20billion shares. While there can be no assurances as to the level the Petrofacshares will trade, both if and when the restructuring is effectuated, NorthEnergy at this time regardless believes that it is more likely than not tohavean unrealized gain on its investment that require us to issue this stockexchange release.
North Energy's entitlement to invest new money and receive new shares andbondsissued by Petrofac continues to be subject to finalizing the Court sanctionedrestructuring. The Company will revert with further information in due courseand as further information becomes available.
CONTACTSRachid Bendriss, Co-CEO, (+47) 92660603, rb@northenergy.no
DISCLOSURE REGULATIONThis information is considered to be inside information pursuant to the EUMarket Abuse Regulation and is subject to the disclosure requirements pursuantto Section 5-12 the Norwegian Securities Trading Act. This stock exchangeannouncement was published by Rune Damm at North Energy ASA, on 9 April 2025at17:05 CEST.
https://newsweb.oslobors.no/message/643327