Norwegian Property has entered a loan agreement with Nykredit on a 7 year facility totalling mnok 964 in order to refinance four of Norwegian Property's properties at Skøyen (Nedre Skøyenvei and Hovfaret). The facility amount corresponds to 75% of the property values. The margin of the loan is initially 40 basispoints (a reduction from the current level of 80 basispoints), but will be reduced to 39 basispoints in line with the amortisation of the loan. Annual amortisation is 0,5%, which is a major improvement from the current level of 1.8%.
 
The new facility is the first phase in a refinancing of the previously entered syndicated loan facility of bnok 12. Norwegian Property will continue the refinancing in 2007, and expects to have completed a full refinancing of the debt in the second quarter of 2007. The ambition is to achieve a significant reduction of the margins (average margin at the end of the 3rd quarter was 80 basispoints), and a significant improvement in the amortisation structure.
 
The facility has a duration of seven years and the interest calculation is based on 3 months NIBOR. The loan consist of two tranches, the tranche 1 within 60% of the property values, has a margin of 30 basispoints. The four properties has been pledged in favour of Nykredit. Norwegian Property has previously fixed 84% of the total interest bearing debt of the company through hedge contracts.
 
For additional information, contact:
Chief Financial Officer Svein Hov Skjelle, mobil +47 930 55 566