securities note for isin: no 0010717473 - prosafe se ... filer/bond loans/open bond... ·...

Prospectus

Securities Note

for

ISIN: NO 0010717473

Prosafe SE FRN Senior Unsecured Bond Issue 2014/2019

Oslo, 04. November 2014

Joint Lead Managers:

Securities Note - Prosafe SE FRN Senior Unsecured Bond Issue 2014/2019

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Important information*

This Securities Note has been prepared in connection with listing of the Bonds on Oslo Børs. The Financial Supervisory Authority of Norway (the

“Norwegian FSA”) has reviewed and approved the Securities Note pursuant to Section 7-7 of the Norwegian Securities Trading Act.

Finanstilsynet has not controlled and approved the accuracy or completeness of the information given in the Securities Note. Financial supervision

and approval relates solely to the Company has included descriptions according to a pre-defined list of content requirements. Finanstilsynet has

not undertaken any form of control or approval of corporate matters described in or otherwise covered by the Securities Note.

New information that is significant for the Issuer or its subsidiaries may be disclosed after the Securities Note has been made public, but prior to

the listing of the Bonds. Such information will be published as a supplement to the Securities Note pursuant to Section 7-15 of the Norwegian

Securities Trading Act. On no account must the publication or the disclosure of the Securities Note give the impression that the information herein

is complete or correct on a given date after the date of this Securities Note, or that the business activities of the Issuer or its subsidiaries may not

have been changed.

Only the Issuer and the Joint Lead Managers are entitled to procure information about conditions described in the Securities Note. Information

procured by any other person is of no relevance in relation to the Securities Note and cannot be relied on.

Unless otherwise stated, the Securities Note is subject to Norwegian law. In the event of any dispute regarding the Securities Note, Norwegian law

will apply.

In certain jurisdictions, the distribution of the Securities Note may be limited by law, for example in the United States of America or in the United

Kingdom. No measures have been taken to obtain authorization to distribute the Securities Note in any jurisdiction where such action is required

other than Norway. Persons that receive the Securities Note are ordered by the Issuer and the Manager to obtain information on and comply with

such restrictions.

This Securities Note is not an offer to sell or a request to buy bonds.

The Securities Note dated 04.november 2014 together with the Registration Document dated 04. November 2014 constitutes the Prospectus.

The content of the Securities Note does not constitute legal, financial or tax advice and bond owners should seek legal, financial and/or tax advice.

Contact the Issuer or any of the Joint Lead Managers to receive copies of the Securities Note.

Factors which are material for the purpose of assessing the market risks associated with the Bonds

The Bonds may not be a suitable investment for all investors. Each potential investor in the Bonds must determine the

suitability of that investment in light of its own circumstances. In particular, each potential investor should:

(i) have sufficient knowledge and experience to make a meaningful evaluation of the Bonds, the merits and

risks of investing in the Bonds and the information contained or incorporated by reference in this

Securities Note and/or Registration Document or any applicable supplement;

(ii) have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular

financial situation, an investment in the Bonds and the impact the Bonds will have on its overall

investment portfolio;

(iii) have sufficient financial resources and liquidity to bear all of the risks of an investment in the Bonds,

including where the currency for principal or interest payments is different from the potential investor’s

currency;

(iv) understand thoroughly the terms of the Bonds and be familiar with the behavior of the financial markets;

and

(v) be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic,

interest rate and other factors that may affect its investment and its ability to bear the applicable risks.

*The capitalized words in the section "Important Information" are defined in Chapter 3:"Detailed information about the securities".


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Contents 1 Risk Factors ................................................................................................................................................. 4

2 Persons Responsible ................................................................................................................................... 5

3 Detailed information about the securities ................................................................................................. 6

4 Additional Information ............................................................................................................................. 14

5 Appendix: Bond Agreement ..................................................................................................................... 15


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1 Risk Factors

The Issuer believes that the factors described below represent the significant risks inherent in investing in the Bond Loan.

Prospective investors should also read the detailed information set out in the Registration Document dated 04. November 2014

and reach their own views prior to making any investment decision.

Risk related to the Bonds

General

All investments in interest bearing securities have risk associated with such investment. The risk is related to the

general volatility in the market for such securities, varying liquidity in a single bond issue as well as company specific

risk factors. There are four main risk factors that sum up the investors total risk exposure when investing in interest

bearing securities: liquidity risk, interest rate risk, settlement risk and market risk (both in general and Issuer specific).

Liquidity risk

The liquidity of the trading market in the Bonds, and the market price quoted for the Bonds, may be adversely affected

by changes in the overall market for similar yield securities, interest rates and the Issuer’s financial performance or

prospects or in the prospects for companies in its industry generally. As a result, an active trading market for the Bonds

may not develop or be maintained.

Historically, the markets for non-investment grade debt, such as the Bonds, have been subject to disruptions that have

caused substantial volatility in their prices. Any market for the Bonds may be subject to similar disruptions. Any such

disruptions may affect the liquidity and trading of the Bonds independently of the Issuer’s financial performance and

prospects and may have an adverse effect on the holders of the Bonds.

No market-maker agreement is entered into in relation to this bond issue, and the liquidity of bonds will at all times

depend on the market participants view of the credit quality of the Issuer as well as established and available credit

lines.

Interest rate risk

The coupon payments, which depend on the NIBOR interest rate and the Margin, will vary in accordance with the

variability of the NIBOR interest rate. The interest rate risk related to this bond issue will be limited, since the coupon

rate will be adjusted quarterly according to the change in the reference interest rate (NIBOR 3 months) over the five

year tenor. The primary price risk for a floating rate bond issue will be related to the market view of the correct trading

level for the credit spread related to the bond issue at a certain time during the tenor, compared with the credit margin

the bond issue is carrying. A possible increase in the credit spread trading level relative to the coupon defined credit

margin may relate to general changes in the market conditions and/or Issuer specific circumstances. However, under

normal market circumstances the anticipated tradable credit spread will fall as the duration of the bond issue becomes

shorter. In general, the price of bonds will fall when the credit spread in the market increases, and conversely the bond

price will increase when the market spread decreases.

Settlement risk

The settlement risk (being the risk that the settlement of Bonds in the Loan does not take place as agreed) consists of

the failure to pay or the failure to deliver the Bonds.

Market risk

The price of a single bond issue will fluctuate in accordance with the interest rate and credit markets in general, the

market view of the credit risk of that particular bond issue, and the liquidity of this bond issue in the market. In spite of

an underlying positive development in the Issuers business activities, the price of a Bond may fall independent of this

fact. Bond issues with a relatively short tenor and a floating rate coupon rate do however in general carry a lower price

risk compared to loans with a longer tenor and/or with a fixed coupon rate.

Ranking of the Bonds

The Bonds constitute senior unsecured obligations of the Issuer. As such, the Bonds are effectively subordinated to the

secured debt and any debt of the Issuer’s subsidiaries outstanding from time to time. The Bonds rank equally in right of

payment with the Issuer’s senior unsecured debt outstanding from time to time and senior in right of payment to the

Issuer subordinated debt (if any) outstanding from time to time. The secured creditors of the Issuer will have priority

over the assets securing their debt. In the event that such secured debt becomes due or a secured lender proceeds

against the assets that secure the debt, the assets would be available to satisfy obligations under the secured debt

before any payment would be made on the Bonds. Any assets remaining after repayment of its secured debt may not

be sufficient to repay all amounts owing under the Bonds.


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3 Detailed information about the securities

ISIN code:

NO 0010717473

The Bonds: FRN Prosafe SE Senior Unsecured Bond Issue 2014/2019

Issuer: Prosafe SE, a European public limited liability company registered in Cyprus with the registration number: SE4.

Security Type: Senior Unsecured Bond issue with floating rate.

Borrowing Limit – Tap Issue: NOK 700,000,000

Borrowing Amount: NOK 700,000,000

Denomination – Each Bond: NOK 1,000,000

Securities Form: The Bonds are electronic registered in book-entry form with the

Securities Depository.

Disbursement/Settlement/Issue Date: 9. September 2014

Interest Bearing From and Including: Settlement Date.

Interest Bearing To: Maturity Date.

Maturity Date: 9. September 2019 at a price 100 %.

NIBOR:

NIBOR 3 months.

Margin: 3.10% p.a.

Day Count Fraction - Coupon: Act/360 – in arrears.

Current Rate:

Business Day Convention:

4,81% p.a (until 09.02.2014)

Modified following.

If the Interest Payment Date originally falls on a day that is not a

Business Day, an adjustment of the Payment Date will be made so that the relevant Payment Date will be the first following day that is a

Business Day unless that day falls in the next calendar month, in

which case that date will be the first preceding day that is a Business Day. (Modified Following Business Day Convention)

Interest Rate Determination Date: 5. September 2014, and thereafter two Business Days prior to each

Interest Rate Adjustment Day.

Interest Rate Adjustment Date:

With effect from Interest Payment Date.

Interest Payment Date: 9. March, 9. June, 9. September and 9. December in each year. The

first being 9. December 2014.

Number of Days first term:

91 days.

Issue Price: 100% (par value).

Yield:

Business Day:

Dependent on the market price. Yield for the first Interest Period (09

September 2014 – 09 December 2014) is 4.81 % p.a. assuming a price of 100 %.

Any day which commercial banks are open for general business, and can settle foreign currency transactions in Oslo and the Norwegian

Central Bank's Settlement System is open.


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Put options: Upon the occurrence of a Change of Control Event, each bondholder

shall have the right to require that the Issuer redeems its bonds (a

“Put Option”) at a price of 100 % of face value plus accrued interest.

The Put Option must be exercised within two months after the Issuer

has given notification to the Bond Trustee of a Change of Control Event. Such notification shall be given as soon as possible after a

Change of Control Event has taken place.

The Put Option may be exercised by each bondholder by giving

written notice of the request to its Account Manager. The Account

Manager shall notify the Paying Agent of the redemption request. The settlement date of the Put Option shall be the fifth Business days

after the end of the two month exercise period of the Put Option.

On the settlement date of the Put Option, the Issuer shall pay to each

of the bondholders holding bonds to be redeemed, the principal

amount of each such bond and any unpaid interest accrued up to (but not including) the settlement date.

Amortisation: The Bonds will run without installments, and shall mature in full on the Maturity Date, and shall be repaid at Face Value (100%) by the

Issuer.

Redemption: Matured interest and matured principal will be credited each

Bondholder directly from the Securities Registry. Claims for interest

and principal shall be limited in time pursuant the Norwegian Act relating to the Limitation Period Claims of May 18 1979 no 18, p.t.

3 years for interest rates and 10 years for principal.

Status of the Loan:

The Bonds shall constitute senior debt obligations of the Issuer. The

Bonds shall rank at least pari passu with all other senior obligations

of the Issuer (save for such claims which are preferred by bankruptcy, insolvency, liquidation or other similar laws of general

application) and shall rank ahead of subordinated debt.

The Bonds are unsecured.

Undertakings: The Issuer shall, from the date of the Bond Agreement and until such time that no amounts are outstanding under the Bond Agreement or

any other Finance Document (unless the Bond Trustee or the

bondholders’ meeting (as the case may be) in writing has agreed to otherwise) comply with, inter alia, the following covenants and

undertakings, as further set out in Clause 13 of the Bond Agreement:

Information Covenants

The Issuer shall, inter alia, comply with the following information covenants throughout the term of the Bonds;

Reporting: The Issuer shall, without being requested to do so,

produce Financial Statements annually and Quarterly Financial

Reports quarterly and make them available on its website in the English language (alternatively by sending them to the Bond Trustee)

as soon as they become available, and not later than 150 days after

the end of the financial year and not later than 90 days after the end of the relevant quarter.

Compliance certificate: The Issuer shall report its compliance with the covenants in Clause 13 in the Bond Agreement semi-annually in

connection with the Reporting on 30 June and 31 December each

year. Such confirmation shall be undertaken in a Compliance certificate.

General Covenants

The Issuer shall, inter alia, comply with the following general

covenants throughout the term of the Bonds;


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Mergers: The Issuer shall not, and shall ensure that no Material

Subsidiary shall, carry out any merger or other business combination

or corporate reorganization involving consolidation of the assets and

obligations of the Issuer or any Material Subsidiary, with any other company or entity not being member of the Group if such transaction

would have a Material Adverse Effect. The Issuer shall notify the

Bond Trustee of any such transaction, providing relevant details thereof, as well as, if applicable, its reasons for believing that the

proposed transaction would not have a Material Adverse Effect.

De-mergers: The Issuer shall not, and shall ensure that no Material

Subsidiary shall, carry out any de-merger or other corporate

reorganization involving splitting the Issuer or any Material Subsidiary into two or more separate companies or entities, if such

transaction would have a Material Adverse Effect. The Issuer shall

notify the Bond Trustee of any such transaction, providing relevant details thereof, as well as, if applicable, its reasons for believing that

the proposed transaction would not have a Material Adverse Effect.

Continuation of business: The Issuer shall not, and shall ensure that

no Material Subsidiary shall, cease to carry out its business. The

Issuer shall procure that no material (substantial) change is made to the general nature or scope of the business of the Issuer or any

Material Subsidiary from that carried on at the date of the Bond

Agreement, or as contemplated by the Bond Agreement in a manner that might jeopardize the Issuer’s fulfillment of its obligations under

the Bond Agreement.

Disposal of business: The Issuer shall not, and shall ensure that no

Material Subsidiaries shall, be entitled to sell or otherwise dispose of

all or a substantial part of the Group’s assets or core business, in a manner that might jeopardize the Issuers fulfillment of its obligations

under the Bond Agreement.

Arm's length transaction: The Issuer shall not, and the Issuer shall

ensure that no Material Subsidiary shall, enter into any transaction

with any person except on arm’s length terms and for fair market value.

Corporate status: The Issuer shall not change its type of organization or jurisdiction of incorporation, without the prior written

approval of the Bond Trustee, such approval not to be unreasonably

withheld or delayed.

Compliance with laws: The Issuer shall, and shall ensure that all

Material Subsidiaries shall, carry on its business in accordance with acknowledged, careful and sound practices in all material aspects and

comply in all material respects with all laws and regulations it or they

may be subject to from time to time.

Special covenants

The Issuer shall comply with the following special covenants

throughout the term of the Bonds;

Ownership to Material Subsidiaries: The Issuer shall not sell,

transfer, assign or otherwise dilute or dispose of any shares or any other ownership interest in any Material Subsidiary, however this

covenant will not apply for sale, transfer etc to the other members of

the Group provided that such transactions do not have a Material Adverse Effect.

Financial Assistance restriction: The Issuer shall not, other than in the ordinary course of business, grant any new loans to, new

guarantees for, or other similar financial assistance to any third party

not being (i) a member of the Group, or (ii) a joint venture company owned partly by any member of the Group.

Financial Covenants


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The Issuer shall comply with the following financial covenants

throughout the term of the Bonds;

Equity Ratio: The Issuer shall ensure that the Equity Ratio of the Group, at all times, shall not fall below 30 %.

Leverage Ratio: The Issuer (on a consolidated basis) shall ensure that the Leverage Ratio of the Group, at all times, will not exceed

5.00.

Listing: The Issuer’s shares shall remain listed on the Oslo Stock

Exchange or on another stock exchange reasonably acceptable to the

Bond Trustee.

Events of Default

The Bond Agreement shall include standard events of default

provisions in respect of the Issuer, however so that the cross default

provisions shall be in respect of the Issuer and any Material Subsidiary as follows:

Cross default: The Bond Trustee may declare the Bonds to be in default if for the Issuer or any Material Subsidiary:

(i) any Financial Indebtedness is not paid when due nor within any applicable grace period;

(ii) any Financial Indebtedness is declared to be or

otherwise becomes due and payable prior to its specified maturity as a result of an event of default

(however described);

(iii) any commitment for any Financial Indebtedness is cancelled or suspended by a creditor as a result of an

event of default (however described); or

(iv) any creditor becomes entitled to declare any Financial Indebtedness due and payable prior to its specified

maturity as a result of an event of default (however

described).

always provided that a threshold in the aggregate amount of Financial

Indebtedness or commitment for Financial Indebtedness falling within paragraphs (i) to (iv) below exceeds a total of NOK 75

million, or the equivalent thereof in other currencies.

Definitions

Change of Control Event: means if any person or group of persons

acting in concert, directly or indirectly, acquires Decisive Influence

over the Issuer.

Decisive Influence: means a person having, as a result of an

agreement or through the ownership of shares or interest in another

person: (a) a majority of the voting rights in that other person; or (b)

a right to elect or remove a majority of the members of the board of directors of that other person.

When determining the relevant person’s number of voting rights in the other person or the right to elect and remove members of the

board of directors, rights held by the parent company of the relevant

person and the parent company’s Subsidiaries shall be included.

EBITDA: means for any relevant period, the consolidated earnings

of the Group before:

a) any interest, discounts or other fees incurred or payable by

any Group Company in respect of Financial Indebtedness; b) any provision on account of taxation;

c) any item treated as exceptional or extraordinary items; and

d) any amount attributable to depreciation of tangible assets

and the amortization of intangible assets.


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In relation to Rigs acquired or new built Rigs delivered: (i) the

contribution of EBITDA shall be annualized for any such Rigs

acquired which have not been in operation for the Group for the full previous 12-month period in the amount of the actual EBITDA, and

(ii) for new built Rigs which are committed under employment

contracts, the contribution of EBITDA may be annualized to include estimated EBITDA for a full 12 month period under the relevant

contract.

In the case of an amendment of the lease accounting rules as

proposed by FASB/IASB, the consolidated earnings of the Group

shall include interest earned on finance leases.

Equity Ratio: means the ratio of Value Adjusted Equity to Value

Adjusted Total Assets.

Financial Indebtedness: means any indebtedness incurred in

respect of: a) moneys borrowed, including acceptance credit;

b) any bond, note, debenture, loan stock or other similar

instrument; c) the amount of any liability in respect of any lease, hire

purchase contract which would, in accordance with GAAP,

be treated as a finance or capital lease; d) receivables sold or discounted (other than any receivables

sold on a non-recourse basis);

e) any sale and lease-back transaction, or similar transaction which is treated as indebtedness under GAAP;

f) the acquisition cost of any asset to the extent payable after

its acquisition or possession by the party liable where the deferred payment is arranged primarily as a method of

raising finance or financing the acquisition of that asset;

g) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or

price, including without limitation currency or interest rate

swaps, caps or collar transactions (and, when calculating the value of the transaction, only the mark-to-market value shall

be taken into account);

h) any amounts raised under any other transactions having the commercial effect of a borrowing or raising of money,

whether recorded in the balance sheet or not (including any

forward sale of purchase agreement); i) any counter-indemnity obligation in respect of a guarantee,

indemnity, bond, standby or documentary letter of credit or

any other instrument issued by a bank or financial institutions; and

j) (without double counting) any guarantee, indemnity or

similar assurance against financial loss of any person in respect of any of the items referred to in( a) through (i)

above.

GAAP: means the generally accepted accounting practice and

principles in the country in which the Issuer is incorporated including, if applicable, the International Financial Reporting

Standards (IFRS) and guidelines and interpretations issued by the

International Accounting Standards Board (or any predecessor and successor thereof), in force from time to time.

Group: means the Issuer and its Subsidiaries, and a “Group Company”: means the Issuer or any of the Subsidiaries.

Leverage Ratio: means the sum of the Group’s Total Debt divided by the Group’s EBITDA (on a trailing four-quarter basis).

Market Value of the Rigs: means the average value from two reputable and independent appraisers appointed by the Issuer. Such

appraisers to be the same appraisers as for any bank loan facilities,

to the extent possible.


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Material Adverse Effect: means a material adverse effect on: (a) the

business, financial condition or operations of the Group taken as a

whole, (b) the Issuer’s ability to perform and comply with its

obligations under the Bond Agreement; or (c) the validity or enforceability of the Bond Agreement.

Material Subsidiary: means any Group Company at any time owning Rigs (present and future).

Rigs: means all and any of the accommodation/service rigs owned by any Group Company (present and future).

Subsidiary: means an a company over which another has Decisive Influence.

Total Debt: means the sum of any of (i) the moneys borrowed and debit balances at banks or other financial institutions, (ii) the issue of

bonds, notes, debentures or any similar instruments and (iii) the

amount of any liability in respect of finance leases.

Value Adjusted Equity: means the Issuer’s consolidated equity

adjusted for the Market Value of the Rigs.

Value Adjusted Total Assets: means the Issuer's consolidated total

assets adjusted for the Market Value of the Rigs.

Listing: At Oslo Børs.

An application for listing will be sent after the Disbursement Date

and as soon as possible after the prospectus has been approved by the

Norwegian FSA.

The prospectus will be published in Norway.

If the bonds are listed, the Issuer shall ensure that the bonds remain

listed until they have been discharged in full.

Purpose:

The net proceeds of the bonds shall be applied towards general

corporate purposes.

NIBOR-definition: The interest rate fixed for a defined period on Oslo Børs’ webpage at

approximately 12.15 Oslo time or, on days on which Oslo Børs has

shorter opening hours (New Year’s Eve and the Wednesday before Maundy Thursday), the data published at approximately 10.15 a.m.

shall be used. In the event that such page is not available, has been

removed or changed such that the quoted interest rate no longer represents, in the opinion of the Bond Trustee, a correct expression of

the relevant interest rate, an alternative page or other electronic

source which in the opinion of the Bond Trustee and the Issuer gives the same interest rate shall be used. If this is not possible, the Bond

Trustee shall calculate the relevant interest rate based on comparable

quotes from major banks in Oslo. If any such rate is below zero,

NIBOR will be deemed to be zero.

Approvals: The Bonds were issued in accordance with the resolution of the

Board of Directors of 6.11.2013.

The prospectus has been sent to the Norwegian FSA for control and

approval and to the Oslo Børs in relation to a listing application of

the Loan.

Finanstilsynet has not controlled and approved the accuracy or

completeness of the information given in the Securities Note. Financial supervision and approval relates solely to the Company has

included descriptions according to a pre-defined list of content

requirements. Finanstilsynet has not undertaken any form of control

or approval of corporate matters described in or otherwise covered by


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the Securities Note.

Bond Agreement: The Bond Agreement has been entered into between the Issuer and

the Bond Trustee. The Bond Agreement regulates the Bondholder’s rights and obligations in relations with the issue. The

Bond Trustee enters into this agreement on behalf of the Bondholders

and is granted authority to act on behalf of the Bondholders to the extent provided for in the Bond Agreement.

When bonds are subscribed/purchased, the Bondholder has accepted the Bond Agreement and is bound by the terms of the Bond

Agreement.

The Bond Agreement is attached to the Securities Note and also

available from the Joint Lead Managers or from the Issuer.

The Bond Agreement contain provisions for calling for

Bondholders’ meeting.. These provisions permit defined majorities to bind all Bondholders

including Bondholders who did not attend and vote at the relevant

meeting and Bondholders who voted in a manner contrary to the majority.

The conditions of the Bonds also provide that the Bond Trustee may, without the consent of Bondholders, agree to (i) any modification of,

or to the waiver or authorization of any breach or proposed breach of,

any of the provisions of Bonds or (ii) determine without the consent of the Bondholders that any event of default or potential event of

default shall not be treated as such.

Bondholders’ meeting: At the Bondholders’ meeting each Bondholder has one vote for each

Bond he owns. See Clause 16 of the Bond Agreement. The Issuer’s

Bonds shall not have any voting rights. Issuer’s Bonds means any Bonds owned by the Issuer, any person or persons over whom the

Issuer has Decisive Influence.

In order to establish a quorum, at least half (1/2) of the votes at the

Bondholders' meeting must be represented. See also Clause 16.4 in

the Bond Agreement related to a Repeated Bondholders’ Meeting.

Resolutions shall be passed by simple majority of the votes at the

Bondholders' Meeting, unless otherwise set out in the Bond Agreement.

In the following matters, a majority of at least 2/3 of the votes is required:

a) amendment of the terms of the Bond Agreement regarding the interest rate, the tenor, redemption price

and other terms and conditions affecting the cash flow

of the Bonds;

b) transfer of rights and obligations of the Bond

Agreement to another issuer, or c) change of Bond Trustee.

Availability of the Documentation:

Bond Trustee:

www.prosafe.com

Nordic Trustee ASA, Postboks 1470 Vika, 0116 Oslo, Norway.

The Bond Trustee shall monitor the compliance by the Issuer of its obligations under the Bond Agreement and applicable laws and

regulations which are relevant to the terms of the Bond Agreement,

including supervision of timely and correct payment of principal or interest, inform the Bondholders, the Paying Agent and the Exchange

of relevant information which is obtained and received in its capacity

as Bond Trustee (however, this shall not restrict the Bond Trustee

from discussing matters of confidentiality with the Issuer), arrange


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Joint Lead Managers:

Bondholders’ meetings, and make the decisions and implement the

measures resolved pursuant to the Bond Agreement. The Bond

Trustee is not obligated to assess the Issuer’s financial situation

beyond what is directly set forth in the Bond Agreement.

(For more details, see also Bond Agreement clause 17)

Danske Bank Markets, P.O. Box 1170 Sentrum, 0107 Oslo, Norway;

Pareto Securities AS, Dronning Mauds gate 3, 0115 Oslo, Norway;

and Swedbank Norway, branch of Swedbank AB (publ), P.O. Box 1441

Vika, 0115 Oslo, Norway.

Paying Agent: Nordea Bank Norge ASA, P.O. Box 1166 Sentrum.NO-0107 Oslo,

Norway. The Paying Agent is in charge of keeping the records in the

Securities Depository.

Calculation Agent: Bond Trustee.

Securities Depository: The Securities depository in which the Loan is registered, by the

Paying Agent, in accordance with the Norwegian Act of 2002 no. 64

regarding Securities depository.

On Disbursement Date the Securities Depository is

Verdipapirregisteret (“VPS”), Postboks 4, 0051 OSLO.

Purchase and transfer of Bonds: Bondholders may be subject to purchase or transfer restrictions with

regard to the Bonds, as applicable from time to time under local laws to which a Bondholder may be subject (due e.g. to its nationality, its

residency, its registered address, its place(s) for doing business).

Each Bondholder must ensure compliance with applicable local laws and regulations at its own cost and expense.

Notwithstanding the above, a Bondholder which has purchased the Bonds in breach of applicable mandatory restrictions may

nevertheless utilize its rights (including, but not limited to, voting

rights) under the Bond Agreement.

Market-Making: There is no market-making agreement entered into in connection with

the Loan.

Prospectus: The Securities Note dated 04. November 2014 together with the Registration Document dated 04. November 2014 constitutes the

Prospectus.

Prospectus and listing fees:

Prospectus fee Registration Document NOK 60,000

Prospectus fee Securities Note NOK 15,600

Listing fee: approximately NOK 27,000 yearly. Announcement fee: approximately NOK 6000

Legislation under which the

Securities have been created:

Norwegian law.

Fees and Expenses: The Issuer shall pay any stamp duty and other public fees in connection with the loan. Any public fees or taxes on sales of Bonds

in the secondary market shall be paid by the Bondholders, unless

otherwise decided by law or regulation. The Issuer is responsible for withholding any withholding tax imposed by Norwegian law.


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4 Additional Information

The involved persons in Prosafe SE have no interest, nor conflicting interests that are material to the Bond Issue.

There are no official ratings of the Issuer or the Bond Loan with ISIN NO 0010717473.

Prosafe SE has mandated Danske Bank Markets, Pareto Securities AS and Swedbank Norway as Joint Lead Managers

for the issuance of the Bond Loan.

The Joint Lead Managers have acted as advisor to Prosafe SE in relation to the pricing of the Bonds.

The Joint Lead Managers and/or any of their affiliated companies and/or officers, directors and employees may be a

market maker or hold a position in any instrument or related instrument discussed in this Securities Note, and may

perform or seek to perform financial advisory or banking services related to such instruments. The Joint Lead

Managers’ corporate finance departments may act as manager or co-manager for this Issuer in private and/or public

placement and/or resale not publicly available or commonly known.

Statement from the Manager:

Danske Bank Markets, Pareto Securities AS and Swedbank Norway have assisted the Issuer in preparing the prospectus.

Danske Bank Markets, Pareto Securities AS and Swedbank Norway have not verified the information contained herein.

Accordingly, no representation, warranty or undertaking, express or implied, is made and the Joint Lead Managers expressively

disclaims any legal or financial liability as to the accuracy or completeness of the information contained in this prospectus or

any other information supplied in connection with bonds issued by Prosafe SE or their distribution.

The statements made in this paragraph are without prejudice to the responsibility of the Issuer. Each person receiving

this prospectus acknowledges that such person has not relied on the Joint Lead Managers nor on any person affiliated

with it in connection with its investigation of the accuracy of such information or its investment decision.

Oslo, 04. November 2014

Danske Bank Markets Pareto Securities AS Swedbank Norway


NO 0010717473

15

5 Appendix: Bond Agreement

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