Dolphin Drilling AS — Capital/Financing Update 2018

Nov 22, 2018

Refinancing update

Refinancing update

Reference is made to previous market communication with regards to the ongoing refinancing efforts of Fred. Olsen Energy ASA ("FOE").

As noted in the stock exchange notice dated 6 November 2018, FOE has presented to its stakeholders a proposal for the refinancing of its capital structure (the "Proposal").

FOE is in the process of negotiating a binding agreement for the sale of the Bolette Dolphin to a selected buyer at a price of USD 340 million. Moreover, although some minor adjustments to the Proposal are still being discussed, the key principles of the Proposal have received the support of bondholders holding a majority of the bonds issued by FOE and the majority shareholder has confirmed that it will not object to the Proposal if put forward to the general meeting. Finally, the key terms of the Proposal have received the support from all lenders, in FOE's secured loan facility except for one.

The implementation of the Proposal, starting with the sale of the Bolette Dolphin, requires the unanimous support of FOE's secured lenders. Certain of FOE's secured lenders have informed FOE that they today will submit to Oslo Tingrett a petition for an injunction against the one secured lender obstructing the Proposal in order to procure that the lender consents to the sale of the drilling unit Bolette Dolphin. Alongside these proceedings, FOE continues its efforts to agree on a refinancing along the lines of the Proposal with its key stakeholders. Unless a solution is found to the refinancing, the Company will need to file for bankruptcy.

Contact: Ivar Brandvold, CEO, (+47) 22 34 10 00 Hjalmar Krogseth Moe, CFO, (+47) 22 34 10 00

This information is subject of the disclosure requirements according to the Norwegian Securities Trading Act section §5-12.