Aker BioMarine Prepares for Refi

OSLO, Norway Aker BioMarine and its majority shareholder and largest creditor, Aker ASA, have prepared a refinancing plan for the company, designed to help build Aker BioMarines financial foundation to advance its business initiatives. The companies are in discussion with key bondholders to secure approval of the refi plan.

The refinancing will strengthen Aker BioMarines capital structure and liquidity through the addition of at least NOK 550 million (US$91.9 million) in equity from Aker and other Aker BioMarine shareholders. In view of the companys significantly stronger capital structure and liquidity, holders of the Aker BioMarine bond loan for NOK 750 million (US$125 million) that matures in May 2010 have been asked to accept a three-year extension of the loans maturity.

Sales, operations, and profitability are developing well, and the refinancing plan we have drafted provides Aker BioMarine with a solid foundation for further growth, said Hallvard Muri, president and CEO, Aker BioMarine. The way we see it, the refinancing plan is balanced and practical. Moreover, bondholders will have a receivable from a company with a considerably stronger financial backbone than is the case right now.

As of Dec. 31, 2009, Aker BioMarines debt to Aker totaled NOK 956 million (US$159.5 million), including accrued interest. The debt includes a convertible loan, Akers share of the bond loan, and a NOK 50 million short-term secured loan. According to the refinancing plan, Akers NOK 473 million net receivable from Aker BioMarine will be converted into equity through a private placement of Aker BioMarine shares. To enable other shareholders to maintain their proportionate ownership interest and to provide necessary additional liquidity, plans are to carry out a private placement of shares directed at existing minority shareholders. The share price in this offering will be the same as in the private placement of shares directed at Aker. Both the share price and the final share issue amount will be determined at a later date. However, Arctic Securities assessment is that the share issue should be conducted at a price that is significantly discounted from the quoted share price. A condition established by Aker is that its ownership interest in Aker BioMarine must not exceed 90 percent following the completion of the share issues.