Dockwise’s allocation of capital raise to debt reduction

Breda, the Netherlands, 8 December 2009. Dockwise Ltd. today announces receipt of confirmation from Fortis UK, in its capacity as the Agent of Dockwise Ltd.’s credit facilities, that an agreement has been reached between Dockwise Ltd. and its lenders syndicate following its USD 250 million (USD 233 million net of transaction costs) capital raise. The key items of the agreement are:

1. Dockwise Ltd. will repay USD 104 million of its second lien (i.e. highest interest rate) facilities.
2. The remaining net proceeds of the capital raise can be applied by Dockwise Ltd. for a debt buy back of first and second lien debt. Details of this buy-back are listed below.
3. The interest margin on the first lien tranches of the facility will be reduced with 0.25%.
4. The leverage ratio covenant (Net Debt/EBITDA) will be relaxed to 4.0 until the end of 2010, then to 3.75 until the end of June 2011, 3.5 until the end of December 2011, 3.25 until end of June 2012, and 3.0 thereafter. The interest cover ratio (EBITDA/Net Financial Charges) will be relaxed to 2.25 at all times.
5. The maximum amount of guarantees/Letters of Credit/Performance bonds Dockwise Ltd. can issue and the amount of exposure Dockwise Ltd. can take to joint ventures will both be significantly increased, enabling the company to carry on its strategy to pursue larger projects.
6. Covenants relating to capex investments, acquisitions and disposals will cease to apply.
7. Dockwise will pay a 20 bps consent fee

Dockwise Ltd. announces its intention to buy back some USD 125 million of its syndicated debt in a reverse Dutch auction to be conducted by The Royal Bank of Scotland. Dockwise expects to finalize this buy back before the end of the year.

Dockwise Ltd. will only entertain offers for second lien debt below 95% and for first lien debt below 97%.

Further information:
Fons van Lith +31 76 5484116/+31 651 314 952
[email protected]

About Dockwise Ltd / Dockwise Group

Dockwise Ltd., a Bermuda incorporated, has a workforce of more than 1200 people both offshore and onshore. The company is the leading marine contractor providing total transport services to the offshore, onshore and yachting industries as well as installation services of extremely heavy offshore platforms. The Group is headquartered in Breda, The Netherlands. The Group’s main commercial offices are located in The Netherlands, the United States, China, Korea, Australia, Brasil, Moscow, Singapore and Nigeria. The Dockwise Yacht Transport business unit is headquartered in Fort Lauderdale and has an office in Italy. The Dockwise Shipping network is supported by agents in Japan, Singapore, Spain, Norway, Argentina and Italy.

To support all of its services to customers, the group also has three additional engineering centers in Houston, Breda and Shenzhen, manufactures specific motion reduction equipment such as LMU (Leg Mating Units) and DMU (Deck Mating Units) and owns a fleet of 20 purpose built semi-submersible vessels.

Dockwise shares are listed on the Oslo Stock Exchange under ticker DOCK.

For further information:

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