Oslo, 6 January 2015: Interoil Exploration and Production ASA ("Interoil") has summoned to a bondholders' meeting to be held 20 January 2015.
Reference is made to the stock exchange notice 23 December 2014, and the subsequent summons to an extraordinary general meeting issued on 29 December, where Interoil announced a comprehensive restructuring proposal.
Interoil has today summoned to a bondholders' meeting to be held 20 January 09:00 (CET). The extraordinary general meeting will be held later the same date. The summons will be published on stamdata.no. The bondholders will be asked to approve the restructuring proposal, including a conversion of portion of the current Bond Loan, and that the remaining outstanding amount under the Bond Loan is converted into a new bond loan (the "New Bond Loan") with new terms. The proposed terms include:
(a) Amending the currency of the new bonds from NOK to USD.
(b) The aggregate amount of the new bonds will be USD 32,000,000, of which USD 30,000,000 will be held by the existing Bondholders in the same proportion as they currently hold in the Bond Loan, and USD 2,000,000 will be held by the former shareholders of Proseis AG in the same proportion as they currently have in the debt IOX owe to Proseis AG.
(c) Par value per bond: USD 1.0.
(d) Settlement: upon approval of the transaction from the extraordinary general meeting of the Company and the bondholder meeting.
(e) Coupon: 6.00% semi-annually with option for the issuer for payment-in-kind interest payments first two years after settlement, and cash only thereafter. Coupon will be 8.00% for interest payments that are made in kind.
(f) Maturity: Five years.
(g) Call options: 105% of par for the life of the New Bond Loan. Change of Control redemption shall be 105 % of par.
(h) No restriction on bank refinancing in Colombia, but restrictions on financial support from Interoil Colombia Exploration and Production Inc (BVI) to other entities, except Norwegian entities.
(i) Certain other non-material changes and clean-ups related to legacy terms and conditions without any material implications for the New Bond Loan.
Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The Company is operator of several production and exploration assets in Colombia. Interoil currently employs approximately 95 people and is headquartered in Oslo.