Norwegian Property has entered loan agreements and mandate agreements with Nordea Bank Norge ASA and SEB Merchant Banking, Skandinaviska Enskilda Banken AB (publ) for financing with a total volume of up to nok 21 billion. The agreements comprise refinancing of drawings under the current syndicated facility, establishment of a new revolving credit facility and committed lines for transactions.

 

Total financing volume is significantly larger than current volume and the refinancing takes place at lower margins than the current loan margins. After the refinancing Norwegian Property's average loan margin is reduced to 56 basis points. Expensing of initial cost will be reduced by 8 basis points. Consequently average margins and costs added to the basis interest rate will be reduced by 12 basis points. The group has interest hedged 80% of the interest bearing deb. The group's average loan interest cost inclusive margins and expenses is 5.0% at the end of the second quarter. Other conditions for the facilities are basically in line with the current loan agreements. For future growth the loan agreements will be adjusted accordingly.

 

The refinancing has a neutral accounting effect in the second quarter 2007. Expensing of previously accrued arrangement fees and refinancing expenses are balanced by a positive effect from termination of hedge accounting for parts of the refinanced effect.

 

For additional information contact:

Norwegian Property ASA, CFO Svein Hov Skjelle, mobile + 47 930 55 566