07 Jun 2011

Norske Skog - pricing of 5 year euro bond

Norske Skog has today priced a Euro denominated bond offering of EUR 150 million (approx. NOK 1.2 billion) with a maturity of 5 years. The bonds are issued at 95.491% of par value, and with a fixed coupon rate of 11.75%. Norske Skog intends to use the proceeds of the offering to repay the near term portion of its existing indebtedness and thereby increase the average time to maturity. The group's future net interest costs are expected to remain at current levels.

- There is currently a difficult bond market due to today's macro conditions. This results in financing being expensive, and we choose therefore only to raise EUR 150 million. We now have sufficient funds through cash on hand, previous asset sales and new financing to cover the loan maturities in 2011 and 2012. Following this offering and the repayment of our debt maturing in 2011 and 2012, our primary long-term debt maturities will be in 2016 and thereafter, says CEO of Norske Skog Sven Ombudstvedt.

The joint lead bookrunners for the offering were Citi, DnBNOR Markets, Nordea Markets og SEB.


Oxenøen, 7 June 2011

Norske Skog
Corporate communication

For further information:
Vice President Corporate Communication
Carsten Dybevig
Mob: (+47) 917 63 117

Financial markets:
Vice President Corporate Funding
Odd-Geir Lyngstad
Mob: (+47) 976 72 806

Senior Advisor Investor Relations
Frode Tegnér
Mob: (+47) 906 19 102

The foregoing constitute "forward-looking statements" which are based on the Company's expectations about future events. While such statements accurately reflect the Company's current expectations, they are subject to risks and uncertainties and actual results could differ materially from those expected or implied by the forward-looking statements.


The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act") and may not be offered or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from registration.  The securities are being privately placed and there will be no public offering of any securities in the United States.

This press release does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The offer and the distribution of this press release and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

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