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2016-02-18

Golden Ocean Group Limited: GOGL - Agreement on amended financing terms and contemplated Private Placement

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, CANADA, AUSTRALIA OR
JAPAN, OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD
BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR OTHER MEASURES. THIS
ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED
HEREIN.

Golden Ocean Group Limited (the "Company") is pleased to announce further
proactive measures to strengthen its balance sheet, including amendment of
all bank loan facilities of the Company, positive discussions with yards
about further postponements of newbuilding deliveries, and a new equity
issue. The refinancing creates a comfortable liquidity position while
preserving an attractive and leveraged exposure to the dry bulk market.

Over the last 12 months, the Company has taken several measures to preserve
its liquidity position, including postponement of newbuilding deliveries,
sale of vessels, sale of newbuildings and sale&leaseback agreements. In light
of the continued weak freight markets, the Company has been exploring
additional measures to further preserve and improve its liquidity position to
better position the Company through the current market cycle and at the same
time to preserve the upside when the market improves.

Commencing from April 1, 2016, there will be no amortizations on the Company's
bank loan facilities until September 30, 2018, deferring a total of USD ~165
million of amortization commitments. Further, the minimum equity ratio will
be removed and the Minimum Value Covenant will be reduced to 100% in the same
period. A cash sweep mechanism will enable the Company to deleverage when the
freight market recover. Further, the Company has also agreed a pre-agreed
drawdown amount of USD 25m per remaining Capesize newbuilding, eliminating
funding risk at delivery. The principal margins on the loans are unchanged
and in average 2.3%, however the Company will pay a slightly increased margin
of 4.25% for the, at any given time, deferred amount under the loan
facilities. The agreement with the banks is conditional upon the Company
raising USD 200m of equity.

The Company has mandated Danske Bank, DNB Markets, part of DNB Bank ASA,
Arctic Securities AS, Clarksons Platou Securities AS and Nordea Markets, part
of Nordea Bank Norge ASA (the "Managers") to explore the opportunity to raise
USD 200 million in a private placement (the "Private Placement").

The Company's largest shareholder, Hemen Holding Limited, currently
controlling approximately 43.1% of the shares in the Company, as well as
other leading shareholders in the Company have indicated support for
subscribing to at least its pro rata share in the Private Placement.

Hamilton, Bermuda

Golden Ocean Group Limited

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbour protections for forward-looking statements, which include
statements concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which are other
than statements of historical facts. Words such as "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. The information set
forth herein speaks only as of the date hereof, and we disclaim any intention
or obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.

In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire rates and
vessel values, changes in demand in the dry bulk market, changes in our
operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption of
shipping routes due to accidents, political events or acts by terrorists, and
other important factors described from time to time in the reports filed by
the Company with the Securities and Exchange Commission.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golden Ocean Group Limited via Globenewswire

HUG#1987159

Författare WKR

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