CMS advises Noreco in relation to the RBL debt financing of the acquisition of Shell's Danish upstream assets for USD 1.9bn

CMS has advised Norwegian Energy Company ASA ("Noreco") regarding its acquisition, through a wholly owned subsidiary, of 100% of the shares in Shell Olie- og Gasudvinding Danmark B.V.. Through this acquisition, which was agreed and announced on 17 October 2018, Noreco has become the second largest oil and gas producer in Denmark and a considerable independent exploration and production company in the North Sea.

“With the successful completion of this transformational acquisition, we will now work closely with the operator to maximise recovery of proven reserves and resources. We will seek to continue value creation also by exploring new opportunities in the DUC concession and elsewhere,” says Riulf Rustad, Chair of the Board of Noreco.

CMS worked closely with Noreco and its other advisers principally in relation to a seven-year USD 900 million Reserve Based Lending (“RBL”) Facility provided by a wide syndicate of banks all internationally recognised in the RBL market, which supported the transaction together with a private placement and a convertible bond.

Further details can be found at:

https://www.noreco.com/news/2019/q3/completion-ofacquisition-of-shells-danish-upstream-assets

The CMS team was led by London based energy finance partner Nicholas Ross-McCall and included colleagues in London and Aberdeen.

Nicholas Ross-McCall said, “We are delighted to have assisted Noreco on this transformational transaction. The transaction is particularly significant as it propels Noreco instantly into being one of the largest North Sea independents in terms of production and 2P reserves, and included a number of tailored features and sources of capital to bring the deal to a successful close. The deal once again showcased CMS’ market leading oil & gas finance capabilities.”