With reference to stock
exchange release dated 7 April 2017.
BW Offshore Limited (BWO) has today closed an
agreement with a nominee of the financial leasing firm, ICBC
Financial Leasing Co., Ltd. (ICBCL), whereby such nominee becomes
an equity partner in BW Catcher Limited, which owns the BW Catcher
FPSO currently under a lease contract with Premier Oil.
The equity investment in the BW Catcher FPSO is
the first transaction under the cooperation agreement signed
between BWO and ICBCL in April this year.
BW Catcher Limited has issued preference shares
with a preferential dividend right to ICBCL, for an aggregate
subscription price of USD 275,000,000.
The Company plans to redeem the preference shares
in full over an estimated term of 12 years. The aggregate
redemption and dividend payments on the preference shares are
estimated to reflect approximately 25-30% of the estimated free
cash flow after debt servicing in the Catcher contract over a
similar term.
The net proceeds from the issue of the preference
shares will be used for general corporate purposes.
"We are very pleased to secure this equity
participation for the BW Catcher FPSO in cooperation with our
strategic partner, ICBCL, and in line with our stated ambition to
seek new ways of enabling further growth for the company", said
Carl K. Arnet, the CEO of BWO. "ICBCL is a world-leading
financial institution and a strong partner. Together we can deliver
cost effective solutions to our clients in the oil and gas
sector."
For further information, please contact:
Knut R. Sæthre, CFO, +47 911 17 876
IR@bwoffshore.com or www.bwoffshore.com
About ICBC
Financial Leasing Co., Ltd.:
ICBC Financial Leasing Co., Ltd.
("ICBCL") is a wholly owned subsidiary and the only leasing
platform of Industrial and Commercial Bank of China, Ltd. ("ICBC"),
the largest commercial bank in the world in terms of total asset
and net profit. Benefits from the global network of ICBC, ICBCL's
business spreads across 40 countries, and has a leading position in
China's financial leasing industry, with business focus on
aviation, shipping and offshore, and large equipment.
About BW
Offshore:
BW Offshore is a leading global
provider of floating production services to the oil and gas
industry. BW Offshore has a fleet of 15 owned FPSOs and one FSO
represented in all major oil & gas regions world-wide. BW
Offshore has a long track record on project execution and
operations. In more than 30 years of production, BW Offshore has
executed 38 FPSO and FSO projects. The company is listed on the
Oslo Stock Exchange.
This information is subject
to the disclosure requirements pursuant to section 5 -12 of the
Norwegian Securities Trading Act.