Floatel International Ltd. : Signing of lock-up agreement by key financial stakeholders in support of a proposed restructuring

Following negotiations with its key financial stakeholders throughout 2020, the Company is pleased to announce that it, together with certain of its subsidiaries, has entered into a lock-up agreement with its 49.9% shareholder, FELS Offshore Pte. Ltd (“Keppel”), and an ad hoc group of 1L Bondholders (the “AHG”) and other consenting 1L Bondholders holding in aggregate over 56% by value of the 1L Bonds (the “Lock-Up Agreement”). The Company is taking the Lock-Up Agreement to a wider group of 1L Bondholders and anticipates securing additional significant support in the coming days. The Lock-Up Agreement will commit the Company, Keppel, the AHG and any acceding 1L Bondholders or 2L Bondholders to use reasonable endeavours to implement a comprehensive financial and corporate restructuring of the Floatel group (the “Transaction”).

The Transaction will in broad terms, once certain milestones set out in the Lock-Up Agreement been passed, entail a corporate reorganisation of the Floatel group of companies, where the entities owning and operating the vessels “Floatel Reliance”, “Floatel Superior”, “Floatel Triumph” and “Floatel Victory” (the “Bond Vessel Entities”) including the vessels and their other assets (the “Bond Vessel Assets”) as well as certain Floatel group entities, which provide operational and management functions, being acquired by a newly established orphan company registered in Bermuda (“Newco”).

The Lock-Up Agreement provides that the Transaction can be implemented consensually with the support of the 2L Bondholders and/or the Lenders if the Company, Keppel and the AHG agree terms with the 2L Bondholders by 21 January 2021 and/or the Lenders by 18 January 2021. Constructive discussions are ongoing with the Lenders regarding a consensual transaction that would result in the Bank Collateral being discharged. The Company has also commenced discussions with the 2L Bondholders and hopes to develop that dialogue to deliver a fully consensual transaction.

The post-Transaction equity will be allocated such that Keppel will hold 49.9%, management 10% and the remainder will be allocated to the 1L Bondholders (subject to dilution by the consideration provided to the Lenders under the Bank Vessel Facility through the proposed scheme of arrangement at Newco) and all to be subject to dilution from any future exercise of warrants.

The vessels that are on charter continue to operate as normal and it is business as usual for the Group’s operations.

See attached press release and presentation for further information about the Group and the Transaction.

For further information, please contact:

Peter Jacobsson, CEO, Floatel International AB

Tel: + 46 31 352 07 00; Mob: +46 76 856 36 18

Tomas Hjelmstierna, CFO, Floatel International AB

Tel: + 46 31 352 07 00; Mob: +46 70 261 09 01