CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

DESCRIPTION OF CERTAIN INDEBTEDNESSAs of December 31, 2010, we had total consolidated indebtedness (consisting of total long-term debt and totalcurrent debt) of SEK 14,630 million (€1,625 million). We also had amounts available under our unutilized creditfacilities of SEK 1,926 million (€214 million). As of December 31, 2010, our indebtedness bore interest at a weightedaverage annual rate of 6.84%.Long-term debt and current debtAs of December 31, 2010, we had long-term debt (including drawings under our bank overdraft facility, butexcluding SEK 13,618 million of the current portion of long-term debt loan) of SEK 1,012 million. The followingindebtedness related to long-term debt and current debt owed to a variety of financial institutions and other investors: the Senior Secured Notes (of which €236 million and $267 million was outstanding as of December 31,2010). The Senior Secured Notes mature on September 18, 2011. See “—The Corral Petroleum HoldingsSenior Secured Notes.” the Subordinated Notes (of which €84 million and $37 million was outstanding as of December 31, 2010).The Subordinated Notes mature on December 31, 2015. See “—The Corral Petroleum HoldingsSubordinated Notes.” the $433 million term loan facility to Preem (of which $213 million was outstanding as of December 31,2010) under the 2008 Credit Facility. The final maturity date under the 2008 Credit Facility isSeptember 17, 2011. See “—2008 Credit Facility.”the SEK 5,200 million term loan facility to Preem (of which SEK 2,888 million was outstanding as ofDecember 31, 2010) under the 2008 Credit Facility. The final maturity date under the 2008 Credit Facilityis September 17, 2011. See “—2008 Credit Facility.”The $1,350 million and SEK 2,000 million multi-currency letter of credit and revolving facilities to Preem(of which loans of $120 million and SEK 4,521 million were outstanding as of December 31, 2010) underthe 2008 Credit Facility. The final maturity date under the 2008 Credit Facility is September 17, 2011. See“—2008 Credit Facility.”The Corral Petroleum Holdings Senior Secured NotesThe Senior Secured Notes, of which €236 million and $267 million was outstanding as of December 31, 2010,will mature on September 18, 2011. The Senior Secured Notes are senior debt of Corral Petroleum Holdings, rankequally in right of payment with all future senior debt of Corral Petroleum Holdings, are effectively senior to unsecureddebt of Corral Petroleum Holdings to the extent of the value of the collateral securing the Senior Secured Notes and aresenior in right of payment to all existing and future subordinated obligations of Corral Petroleum Holdings. The SeniorSecured Notes are secured by a pledge of all the shares of Corral Petroleum Holdings granted by Moroncha Holdings (the“Share Pledge”).The Corral Petroleum Holdings Subordinated NotesThe Subordinated Notes, of which €84 million and $37 million was outstanding as of December 31, 2010, willmature on December 31, 2015. The Subordinated Notes constitute unsecured subordinated debt of Corral PetroleumHoldings, rank junior in right of payment with all existing and future senior debt of Corral Petroleum Holdings and rankequally in right of payment to all existing and future unsecured subordinated obligations of Corral Petroleum Holdings.The Subordinated Notes are effectively subordinated to any secured debt of Corral Petroleum Holdings to the extent ofthe collateral securing such debt.2008 Credit FacilityPreem and Former Corral Petroleum Holdings entered into the 2008 Credit Facility pursuant to a FacilitiesAgreement dated September 17, 2008, among Preem as borrower, Former Corral Petroleum Holdings as borrower andguarantor, Merchant Banking, Skandinaviska Enskilda Banken AB (publ) and Handelsbanken Capital Markets, SvenskaHandelsbanken (AB) (publ), as mandated lead arrangers, certain financial institutions as lenders, Merchant Banking,Skandinaviska Enskilda Banken AB (publ), as facility and security agent, Skandinaviska Enskilda Banken AB (publ) asfactoring bank and Svenska Handelsbanken (AB) (publ), as issuing bank. Following the merger of Former CorralPetroleum Holdings into Preem on October 30, 2008, Preem assumed all the assets and liabilities of Former CorralPetroleum Holdings. The 2008 Credit Facility provides Preem with a SEK 7,200 million term loan and multi-currencyrevolving facility comprised of a SEK 5,200 million term loan facility and a SEK 2,000 million multi-currency revolvingfacility and $1,783 million (or the equivalent thereof in other currencies) of revolving credit and term loan facilitiescomprised of a $433 million multi-currency term loan facility and a $1,350 million (as amended) multi-currencyrevolving facility.53