Dolphin Drilling AS - Capital/Financing Update 2017

Summons to Bondholders' Meeting

Reference is made to the announcements on 15 December 2016 and 5 January 2017

regarding covenant waivers and amendments to Fred. Olsen Energy ASA's ("FOE" or

the "Company") original USD 2 billion credit facility agreement (the "Bank

Facility"). The amendments to the Bank Facility include, inter alia, that the

leverage ratio and interest cover ratio will be temporarily waived until 30 June

2018, subject to similar covenant waivers being accepted by the bondholders in

FOE05 (ISIN NO 0010704125).

The Company has today summoned a Bondholders' Meeting to be held on 26 January

2017 with a view to consider the following proposed amendments to the bond

agreement:

- The leverage ratio and interest cover ratio is temporarily waived until

30 June 2018

- As compensation, the Company will offer each bondholder a pro rata

repurchase of bonds at 100% of par value for a total purchase price of NOK 75

million (plus accrued and unpaid interest on the repurchased bonds),

representing a nominal amount of approximately 6.82% of the outstanding bonds

- The Company will not pay any dividends during the waiver period.

The compensation proposal represents the maximum agreed compensation as per the

approved waivers and amendments to the Bank Facility. Based on the prevailing

market conditions the Company expects that without receiving the covenant

waivers, the covenants in issue can become challenging in the second half of

For questions regarding the above, please contact:

Danske Bank Markets, DCM Sales, +47 22 86 13 07 or [email protected]

DNB Markets, Fixed Income Sales, +47 24 16 90 30 or [email protected]

Hjalmar Krogseth Moe, CFO Fred. Olsen Energy, + 47 22 34 12 49

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