Debt financing

Financial strategy

As an agile independent company, it is important for DNO to maintain the financial strength and flexibility it needs to fund its growth opportunities 

In addition to internally generated funds, DNO continuously assesses access to different debt markets to enhance financial flexibility. DNO has currently established the following bond loan facilities with Nordic Trustee ASA as trustee for the bondholders:

ISIN NO0010740392

Details  
ISIN: NO0010740392
Ticker: Ticker to be confirmed
Issuer: DNO ASA
Maturity: 18.06.2020
Currency: USD
Interest rate: 8.75% fixed
Loan amount: USD 400 million
Status of the notes: Senior unsecured
Call option: Yes (2017-2020)
Put option: N.A 
Trustee: Nordic Trustee ASA
VPS agent: DnB NOR Bank ASA
Lead manager(s): ABG Sundal Collier, DNB Markets, Fearnley Securities and Pareto Securities

Bond information

Bond ranking

The bond shall rank ahead of subordinated debt and shall at all times rank at least pari passu with all of DNO’s other obligations, save for such claims which are preferred by bankruptcy, insolvency, liquidation or other similar laws of general application.

Financial covenants

The bond loan includes typical financial covenants on market terms. Inter alia, the bond loan requires DNO to have a minimum equity ratio of 30 percent, maintain liquidity of a minimum of USD 40 million, and to impose a restriction to declare or make any dividend payments or other distributions exceeding 25 percent of net income based on DNO’s consolidated accounts for the previous financial calendar year.

There are no commitments related to further drawdowns on the bond loans.

Maturity

The bond loan matures on June 16, 2020. Until maturity there are no installments to be paid.

Documents

The bond registration document, securities note and summary are available through the links below.

 

Haakon Sandborg 

Chief Financial Officer
Telephone: (+47) 23 23 84 80