Signing asset purchase agreement for Nexus #1

Signing asset purchase agreement for Nexus #1

Nexus Floating Production Limited and Nexus 1 Private Limited has on 27 October 2009 entered into an asset purchase agreement related to the FPSO vessel Nexus 1 (the “FPSO Nexus 1”) with the purchaser being Centennial Asset Ltd. (the “Purchaser”), an affiliate of Brazil’s EBX Group (the “Acquisition”).
The FPSO Nexus 1 will be sold on an “as is” basis and the Purchaser will undertake certain contracts and obligations related to the final construction, development and delivery of the FPSO Nexus 1, including payment of the outstanding balance due to Samsung Heavy Industries Ltd. in an amount of approximately USD 38.1 million.

The purchase price is equal to the aggregate of the following:

USD 255,000,000 to fully repay the 1st priority lenders;
USD 87,500,000 to repay the 2nd lien bondholders, equal to a 50.00% recovery of the outstanding face amount; and
USD 7,972,500 to repay the convertible bondholders, equal to a 10.63% recovery of the outstanding face amount.

In addition, approximately USD 11.3 million (which includes the cash balance of Nexus 1 Private Limited as of today) will be used to fully cover operational costs in the intermediate period and amounts due to all other creditors.

The sale of FPSO Nexus 1 has been approved by the Board of Directors, its first priority lenders, as well as bondholders representing more than 2/3s of the outstanding amount in the USD 175 million 2nd lien bond loan and in the USD 75 million unsecured convertible bond loan respectively.

Closing of the Acquisition is expected to be within 15 November 2009 and is subject to the fulfilment of conditions precedent customary to transactions of this nature.

For further information, please contact:

   Finn Bjørnstad, Chairman
   fbj@wr.no
   +47 41 50 44 81

   Anders Holm, CEO
   aho@nexusfp.no
   +47 90 60 50 72