OSLO, NORWAY: Norwegian Energy Company ASA (Noreco) has entered into a USD 1.0 billion swap transaction with a group of banks to fix the Company’s floating interest rate exposure under its Reserve Based Lending (RBL) facility from 1 Nov 2021 until 30 June 2024.
Noreco will as a result pay interest on its RBL cash drawings equal to 0.4041 percent plus the applicable margin. This is in line with the Company’s desire to minimise pre-Tyra cashflow exposure to potential future market volatility.
“Fixing our interest rate exposure is a further step taken by us to enhance pre-Tyra cashflow visibility and reduce uncertainty. Together with the Company’s material hedging arrangements and recent proposed amendments to NOR14, we are continuing to optimise our capital structure in the near-term to deliver Tyra,” said Euan Shirlaw, Chief Financial Officer in Noreco.
Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The Company’s shares are listed on the Oslo Stock Exchange with ticker: “NOR”. www.noreco.com