Cecon ASA Signed Completion Contracts for Vessels with Chantier Davie Canada Inc.

Cecon ASA announced that it signed on February 1, 2013 Completion Contracts for the three vessels under construction at Chantier Davie Canada Inc., hull 717 with a cost of CAD 69.5 million and delivery autumn 2013, hull 718 at a cost of CAD 75 million and hull 719 at a cost of CAD 100 million. The entering into these contracts fulfills the condition of the Agreement with Export Development Canada (EDC) in acquiring the USD 200 million financing received by Cecon ASA in February 2009. This agreement covers the loan principal of USD 200,000,000 and all accrued unpaid interest up until execution of the agreement (approx USD 51 million as of January 31, 2013). The agreed consideration to be paid to EDC from Cecon ASA is USD 27,000,000. As announced on January 2, 2013, Cecon ASA and York Capital Management Global Advisors LLC have signed a committed term sheet for a multi-tranche senior secured bond issue of up to USD 107.5 million for the purposes of purchasing the existing Export Development Bank of Canada Loan, providing incremental working capital to Cecon, and funding the completion of construction of Hull 717 at Chantier Davie Canada. In addition to construction financing for Hull 717, York has made construction financing of up to USD 175 million available for Cecon for the completion of Hulls 718 and 719, respectively.