Reference is made to the stock exchanges notice dated 3 June 2013, 26 June 2013 and 27 June 2013 regarding the refinancing of SinOceanic I AS ("

SinO I") and the private placement in the SinOceanic Shipping ASA (the "Company") resolved by the extraordinary general meeting of the Company on 26 June 2013 (the "Private Placement").

The refinancing of SinO I as described in the Company's stock exchange notice dated 3 June 2013 was completed earlier today as follows: 

  1. SinO I entered into a sale lease back arrangement for the MSC Vega with Grand Indus  Shipping Limited, Hong Kong ("Grand Indus Shipping"): 

The MSC Vega was sold from SinO I to Grand Indus Shipping against a purchase price of USD 154,425,000. At the same time, the parties entered into a bare boat charter agreement pursuant to which SinO I will charter the MSC Vega from Grand Indus Shipping for a period of 15 years at a charter hire covering the repayment installments payable by Grand Indus Shipping to a major Chinese bank under a USD 105,000,000 loan agreement plus interest equal to 3 months LIBOR Rate and a margin of 6.45% p.a. USD 105,000,000 of the purchase price for the MSC Vega was paid on completion, while the remaining part of the purchase price was left outstanding as pre- paid charter hire under the charter party agreement.

SinO I may at any time exercise an option to re-purchase MSC Vega. If the purchase option is exercised, the option price is equal to the outstanding principle plus accrued interest under the loan agreement with the relevant Chinese bank. If the option is exercised during the first three years, a declining fee of 1.5%, 1.0% and 0.5% of the outstanding amount will also be payable. The Company considers that the sale lease back arrangement constitutes a financial lease under IFRS.

  1. The proceeds from the sale lease back arrangement that were received by SinO I on completion of the sale lease back arrangement were used inter alia to repay SinO I's existing senior debt to  Deutsche Bank in full, and to repay USD 20,000,000 of the outstanding amount under the SinO I's junior loan (the "Vega Junior Loan") with Oceanus International Investment AS ("Oceanus"). 

All other amounts outstanding under the Vega Junior Loan ("Tranche 2") continues to be interest bearing with LIBOR + 10% p.a, and now rank pari passu with all other unsecured debt of SinO I. Tranche 2 falls due for payment 90 days after the lender's demand after 6 January 2020. Accrued interest on Tranche 2 will be paid every three months in arrears subject to SinO I having available cash. Accrued but unpaid interest shall be compounded and added to the principal amount at year end every year.

  1. Oceanus transferred its rights under Tranche 2 to Sinindo Holdings Limited ("Sinindo"). Thereafter, Sinindo subscribed to the Private Placement, and transferred Tranche 2 to the Company in full payment of the shares to be issued to Sinindo under the Private Placement. The resulting share capital increase will be registered in the Norwegian business registry without delay. 
The Company contemplates converting a part of Tranche 2 of the Junior Loan into equity in SinO I at a later point in time.

As previously communicated by the Company, Sinindo has undertaken to complete a compulsory acquisition of all shares in the Company following the registration of the share capital increase resulting from the Private Placement. After such mandatory acquisition, the board will propose to the general meeting of the Company that the shares of the Company be delisted.

For further information on the refinancing, please see the notice of the EGM dated 3 June 2013 or contact Garup Meidell, Deputy CEO, on phone +47 951 60 067.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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