28 December 2016

Full acceptance of comprehensive refinancing process

Bergen Group ASA has now achieved full acceptance of the comprehensive refinancing process of the group.

CEO Hans Petter Eikeland

The main elements in the refinancing package include a fully subscribed private placement, a substantial reduction of debt obligations and new loan facility on favorable terms.

“This is a milestone for Bergen Group. The comprehensive refinancing which now is agreed upon by all involved parties have been crucial in order to establish a satisfactory company balance sheet and capital structure for the group. We do now have a robust financial platform that also provides opportunities for further growth”, says CEO Hans Petter Eikeland.

The CEO is humble to the support from creditors when it comes to putting in place the comprehensive refinancing which includes a total debt reduction in the order of NOK 182 million through a voluntary reduction of 50% of the commitments Bergen Group ASA had incurred up until summer 2015. The Group's commitments to Eastern European Investment Management (EEIM) related to the arbitration award in Stockholm back in summer of 2013, is also a part of the debt reduction package. EEIM has also accepted the residual payment of this arbitration award to be made up through a convertible loan of 1.8 million EURO.

The refinancing package  which now has been approved by all involved parties  includes NOK 22 million in new equity through a private placement where managers in the Group and Bergen Group Services participates with NOK 7.5 million, of which CEO Hans Petter Eikeland has signed up for NOK 5 million. The rest of the private placement comes from the main shareholders Brian Chang Holdings Limited, AS Flyfisk and Køhlergruppen AS. Brian Chang Holdings Limited and AS Flyfisk have also granted Bergen Group ASA a loan facility of NOK 20 million on favorable terms.

“Bergen Group ASA is now well prepared for further development of the Group. We have a solid foundation in the extensive expertise and the strong market position that Bergen Group Services has built up over a long time”, says CEO Hans Petter Eikeland.

The board of directors in Bergen Group ASA has initiated the process of preparing a repair issue based on the authorization granted at the extraordinary general meeting held on 17 November 2016. The subsequent offering is planned for Q1 2017 and concurrent subscription price in the private placement. The subsequent offering will generate gross proceeds of up to NOK 5.3 million.

The refinancing includes positive clarification on all the elements that have been communicated to the market through the stock exchange announcement on 27 October 2016 and in connection with the Extraordinary General Meeting on 17 November 2016, as well as the presentation of Q3 2016 on 18 November 18 2016. A more detailed overview of the accounting effect of the refinancing will be presented in the interim report for Q4 2016. A separate notice will be disclosed upon completion of the elements in the refinancing package.

For further information:
CEO Hans Petter Eikeland, phone +47 932 08 177 
CFO Nils Hoff, phone +47 930 92 346
SVP Communications Øyvind Risnes, phone +47 480 48 561