Interoil's Bond Payment Restructuring Proposal Explained

Interoil's Bond Payment Restructuring Proposal

Interoil Exploration and Production ASA (the "Company") has initiated a process with Nordic Trustee AS to gather bondholders for a written resolution. This action concerns the senior secured callable bonds identified by ISIN NO 001 0729908 (the "Bonds").

Purpose of the Written Resolution

The primary goal of this resolution is to seek approval for amending the bond terms related to the interest payment on the Bonds that is due at the end of January. Specifically, the Company intends to manage the January Interest Payment in a unique way.

Instead of a cash payment, Interoil proposes to fulfill this obligation by issuing new Bonds—known as the "January PIK Bonds." These new Bonds will mirror the terms and conditions of the existing Bonds, maintaining the same interest rate of eight point fifty percent (8.50%). This method allows the Company to effectively manage cash flow while meeting its obligations to bondholders.

Voting Procedure and Timeline

To enact the proposed amendment, a simple majority of bondholders must vote in favor of the resolution within a specified timeframe. The voting window will remain open for ten business days from the date of the Summons. It is critical that all votes are submitted by 5 PM Oslo time on the last day of the voting period, which will fall at the end of January.

Understanding the Impact on Bondholders

This proposed restructuring could have significant implications not only for the Company's financial standing but also for bondholders navigating their investments. By opting for the issuance of additional bonds as payment instead of cash, Interoil aims to ensure continued compliance with its financial obligations without compromising the integrity of its operations.

This strategy reflects a broader trend in financial management within the industry, where companies seek to alleviate short-term liquidity pressures while maintaining investor confidence. As Interoil focuses on leveraging its production capabilities in Latin America, such strategic financial decisions become essential.

For bondholders and potential investors, understanding these amendments provides clarity on the Company's ongoing strategies and risk management approaches. The Company remains committed to transparent communication, ensuring that stakeholders stay informed about decisions that may affect their interests.

About Interoil Exploration and Production ASA

Interoil Exploration and Production ASA is a pioneering exploration and production company based in Norway. It is publicly listed on the Oslo Stock Exchange and centers its operations in Latin America, particularly Colombia and Argentina. The Company holds multiple production and exploration licenses in these regions, thereby positioning itself advantageously within the market.

Contacting Interoil for More Information

If you have any inquiries regarding the recent changes or require further clarification, you can reach out directly to the Company at ir@interoil.no. Open channels of communication ensure that bondholders remain informed and can express their concerns or queries.

Frequently Asked Questions

What is the purpose of the written resolution?

The written resolution aims to gain approval for amending the bond terms concerning the January Interest Payment.

How will the January Interest Payment be settled?

The payment will be settled via the issuance of additional Bonds, referred to as January PIK Bonds, instead of cash.

What is the interest rate of the new Bonds?

The new Bonds will carry the same interest rate of eight point fifty percent (8.50%) as the existing Bonds.

When does the voting period for the resolution end?

The voting period will last for ten business days, concluding at 5 PM Oslo time on the last day of January.

How can bondholders seek more information?

Bondholders can directly contact the Company at ir@interoil.no for any queries related to the bond terms or the resolution.

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