Refinancing Agreement

RNS Number:6461K
Kvaerner ASA
26 September 2001


Kvaerner successfully concludes agreement with its banks on refinancing
structure

LONDON, 26 SEPTEMBER 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group said today that following its statement on 19 September,
2001, it had now reached agreement with its main banks on how to structure the
short-term and long-term financing of the Group.  In the negotiations with the
banks, the provision of short-term liquidity has received first priority.
The outcome of the negotiations with the Company's main banks is summarised as
follows:

- The term of a NOK 800 million short-term loan has been extended to 31
December 2001. This loan was granted on 19 September 2001.

- The banks will work to replace Kvaerner's existing short-term loan
facilities with a three-year loan, which is to be repaid at the end of the
term.

- The banks presume that a Rights Issue will be undertaken, securing proceeds
of at least NOK 1 billion. The Board intends, however, to implement an Issue
of NOK 2 billion, based on preferential rights for existing shareholders.

- Given the uncertainty attached to the Kvaerner share lately, and a desire to
reduce risk for the new capital, the Board will work to arrange the Rights
Issue as three-year convertible bond, either in whole or in part.

Based on the agreement reached with the Group's banks, efforts will now be
intensified to establish an underwriting syndicate for the Rights Issue. So
far, DnB, Folketrygdfondet, Siem Industries, and others have agreed to
participate in the syndicate, subject to a satisfactory refinancing of the
Group's US$ 450 million loan facility and a full underwriting of the Rights
Issue of NOK 1 billion. The total amount underwritten so far is NOK 500
million.   The terms and conditions of the Rights Issue will be determined in
due course. The Rights Offering is expected to be completed by the end of
November.

There has been an ongoing dialogue with the major shareholders of the Group,
and this dialogue is expected to continue. 

For more information:   Paul Emberley, Vice President Group Communications:
+44 (0)20 7339 1035 or  +44 (0)7768 813090.

Note to editors:  Kvaerner is a world-class Anglo-Norwegian engineering and
construction Group.  It meets the needs of its customers by adding value to
their business - through the provision of innovative, cost-effective solutions
- for challenges in the hydrocarbons, process and metals industries.  The
Group's activities are currently organised in two core business areas: E&C
(Engineering and Construction), and Oil & Gas.  Kvaerner is a Norwegian
registered business, but has a London, UK-based international headquarters. 
The Group has annual revenues in excess of US$6 billion, with some 35,000
permanent staff located in almost 35 countries throughout Europe, Africa, Asia
and the Americas.

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