PGS Refinancing Plan

PGS has carried out a private placement of new ordinary shares for gross proceeds of approximately NOK 1.9 billion (~USD 225 million). Subject to final completion of the Private Placement and market conditions, the Company expects to carry out a subsequent offering to existing eligible shareholders of the Company of approximately NOK 300 million (USD 35 million).

The proceeds from the Private Placement will be used primarily to finance an inter-conditional exchange offer (the "Exchange Offer") for the Company's existing 7.375% Senior Notes due December 2018 (the "2018 Notes"). The Exchange Offer was launched together with this Private Placement.

To maintain a robust financial position through the ongoing uncertainty, the Company has established a financial plan which seeks to strengthen its liquidity position even further by proactively addressing the December 2018 maturity of the 2018 Notes, deleveraging the balance sheet and reducing interest costs. Through the Exchange Offer, the Company is seeking to address the maturity of the 2018 Notes, the cash consideration for which will be financed from a portion of the proceeds raised in the Private Placement. The Exchange Offer is conditional upon the closing of the Private Placement.

In November 2016, the Company has further agreed with the banks in the revolving credit facility syndicate to extend a portion of its revolving credit facility currently due 18 September 2018 (the "RCF") until 18 September 2020. Subject to and upon completion of the Private Placement and the Exchange Offer, the RCF will be reduced from USD 500 million to USD 400 million. On 18 September 2018 the RCF will be further reduced to USD 350 million. Finally, the RCF refinancing includes covenant reset to retain flexibility of liquidity reserve out to 2020 and no change in security position for the RCF banks.

For more information see the Company's press releases below or at