Eidesvik Offshore - Capital/Financing Update 2017

Summons to bondholders meeting - Proposal for full settlement of Eidesvik Offshore ASA Senior Unsecured Bond Issue 2013/2018 at 60% of par value

Reference is made to Eidesvik Offshore ASA's (the "Company")

stock exchange notice dated 24 February 2017 regarding the

Company's sale of Viking Poseidon (the "Sale"). Following

the Sale, the Company has negotiated with the holders of the

Company's bonds under the bond issue named "FRN Eidesvik

Offshore ASA Senior Unsecured Bond Issue 2013/2018"

(the "Bond Loan") regarding a full redemption of the Bond

Loan at 60 % of par value. The repayment of the Bond Loan

will be partly financed with the proceeds from the Sale. In

addition, Eidesvik Invest AS has offered to grant the

Company a shareholder loan in the amount of NOK 30 million

for repayment of the Bond Loan, as well as agreeing, on

certain terms, to contribute an amount in the region of NOK

100 million in new equity if the Company obtains

satisfactory terms in connection with a refinancing of the

Company's bank debt.

The Company has received irrevocable voting undertakings

from holders of 67.6 % of the bonds in the Bond Loan in

favour of the proposal.

Under the proposal to the holders of the Bond Loan, the

Company will have the right and obligation to settle the

Bond Loan in full by paying 60 % of the Bond Loan's par

value within the earlier of (i) five business days after

completion of the Sale and (ii) 31 March 2017; however in

each case subject to (a) the bondholders' meeting's

acceptance of the proposal and (b) the Company having

received the sales proceeds in full from the Sale within

three business days prior to the applicable back stop date

31 March 2017.

For further information, please see the attached summons to

the bondholders' meeting.

Contact: CEO Jan Fredrik Meling (TEL +47 916 75 119)

This announcement is subject to disclosure in accordance

with the Norwegian Securities Trading Act section 5-12.

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