Successful Financial Restructuring

Source: 12/17/2021, Location: Europe

Reference is made to earlier information provided regarding the financial restructuring process of Prosafe SE and Prosafe Rigs Pte. Ltd. ("PRPL"). Prosafe SE is pleased to announce that the conditions for the Schemes in Singapore for becoming effectively implemented have been met, following which the Transaction Effective Date in accordance with the Schemes has occurred.

Following occurrence of the Transaction Effective Date, the conversion of USD 996 million of debt (the "Step 1 Conversion") in return for 7 894 088 600 shares in Prosafe SE (the "Tranche 1 Shares") has been implemented. After the Step 1 conversion, the aggregate amount of 7 894 088 600 shares has today been issued at a conversion rate of EUR 0.1116. The total number of outstanding shares is now 7 982 075 598 and the share capital is EUR 399 103 779.90. The share capital and the shares were registered in the Register of Business Enterprises (“Foretaksregisteret”) on 16th December 2021.

Further, a Step 2 Conversion (the "Step 2 Conversion") of the remaining USD 91 million debt will be converted within days as part of the restructuring in return for 816 624 191 shares (the "Tranche 2 Shares") The conversion rate will be EUR 0.1113, and EUR 0.0884 for two creditors with separate agreements.

After finalization of the Step 1 Conversion and the Step 2 Conversion, including original share capital, the aggregate amount of 8,798,699,789 shares will be issued and the share capital will be EUR 439,934,989.45.

Following finalization of the conversion of the debt contemplated by the Schemes and the Norwegian restructuring plan, the restructuring has resulted in in a significant de-leveraging of the balance sheet with ca. 75% debt reduction, corresponding reduction in annual debt service, ca. USD 60 million in cash per year-end 2021 and in sum a significantly improved balance sheet and improved financial flexibility.

- Highlights of the completed financial restructuring:
- Significant de-leveraging: ca. USD 1,100 million of total debt reduction. Reinstated debt of USD 343 million plus Safe Eurus
- Significant runway and financial flexibility: No mandatory debt maturities until December 2025. Only cash-sweep above USD 66 million
- Reduced interest costs: ca. USD 9 million in annual debt servicing costs post-transaction
- Liquidity headroom: Liquidity well in excess of agreed minimum cash covenant of USD 18 million through 2022, increasing to USD 28 million in 2024. Expected liquidity per year end 2021 of ca. USD 60 million
- Positive book equity
- Equitization and shareholders: Ca. USD 1,100 million of debt has been equitized into 99% of Prosafe SE equity
Following the financial restructuring, Prosafe is revitalized and ready to embark on the next years in pursuit of protecting and creating value.

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