Noreco Advisers Propose Better Offer in $520 Million Refinancing
Advisers to Norwegian Energy Co. ASA (NOR), a North Sea oil producer facing insolvency, are proposing better terms on part of a 3.1 billion kroner ($520 million) refinancing after bondholders threatened to scupper the plan.
Pareto Securities AS and Arctic Securities ASA are proposing improved terms to the holders of Noreco’s three unsecured bonds, according to a copy of a document sent by the company’s advisers today. The three bonds have an outstanding value of 1.3 billion kroner.
Chief Executive Officer Svein Arild Killingland declined to comment on whether Noreco had offered better terms, saying it was “always open to alternative proposals that safeguard the balance” of its initial plan.
Noreco, based in Stavanger, is seeking bondholder approval to replace six bonds with four new ones carrying lower interest rates and longer maturities.
The company has suffered intermittent output at the Huntington field in the U.K. North Sea and a slew of shutdowns at Oselvar in Norway as well as at Nini, Nini East and Cecilie in the Danish North Sea. It may also need to raise 500 million kroner ($85 million) to cover the cost of abandoning facilities off Denmark’s shores.
Bankers at Pareto and Arctic weren’t immediately available when Bloomberg called their offices in Oslo seeking comment.
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