2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 152 CONSOLIDATED FINANCIAL STATEMENTS 4 Notes to the consolidated financial statements Medium- and long-term borrowings Medium- and long-term borrowings comprise mainly “club deal” financings and bilateral loans. The majority of these borrowings are backed by assets (vessels) held as security (first-ranking mortgage or negative pledge). The vessels are clearly identified when the loan contract is signed, details of which appear in note 5.1 “Contractual obligations and other off-balance sheet commitments” to the consolidated financial statements. During the performance of the loan contract, for technical reasons, BOURBON may have to adjust the list of vessels initially assigned to the loan. Two options then arise – either partial redemption of the loan or substitution with another vessel. Whichever is the case, an amendment to the loan contract is signed to reflect the new guarantees. Between 2005 and 2015, BOURBON concluded four “club deal” loans: 3 a €320 million “club deal” loan taken out in 2005 for which the redemption phase began in April 2007, with an outstanding balance of €32 million as of December 31, 2017; 3 a €450 million “club deal” loan taken out in the summer of 2007 for which the redemption phase began in January 2010, with an outstanding balance of €169 million as of December 31, 2017; 3 a €318 million “club deal” loan taken out in July 2009 for which the redemption phase began in 2011, fully repaid in July 2017; 3 a €340 million “club deal” loan taken out in 2015 for which the redemption phase began in June 2016, with an outstanding balance of €326 million as of December 31, 2017. These three outstanding “club deal” loans are covered by the debt rescheduling agreement signed on July 28, 2017 and described above. In accordance with this agreement, the repayments for the club deal loans were restructured progressively over the extended payment schedule. In parallel, bilateral borrowings (in US dollars, euros and Norwegian kroner) are regularly signed. Therefore, in 2017: 3 a financing agreement for €50 million was signed and drawn down in July 2017 for the refinancing of five deep-sea tugboats; 3 a finance lease for €23.3 million was signed and drawn down in July 2017 for the financing of a PSV class Bourbon Explorer; 3 short-term credit lines totaling €216.8 million were transformed into a syndicated loan and two medium-term loans in June and July 2017. In many instances, contractual documentation includes compliance with a debt/equity ratio. The documentation relating to the loans affected by the restructuring agreement was modified to align the ratios with the requirements of those agreements. Short-term lines of credit Cash management is coordinated at the Group’s operating headquarters. Financière Bourbon, a partnership organized as a cash clearing house, offers its services to most of the Group’s operating subsidiaries. These entities, under a cash agreement with Financière Bourbon, receive active support in the management of their cash flow, their foreign currency and interest rate risks, their operating risks and their short and medium-term debt, in accordance with the various laws in force locally. At the beginning of 2017, the Group had short-term credit lines of €218.8 million with Financière Bourbon. Upon the signing of the debt rescheduling agreement on July 28, 2017, these credit lines were transformed into: 3 a renewable syndicated loan repayable by installments over the long term, backed by assets worth €196.8 million. This new credit was obtained by another Group subsidiary; 3 two lines of medium-term credit totaling €20 million repayable by installments without any underlying assets; 3 a line of spot credit of €2 million repayable by installments. The Group has signed “combined account” agreements with two banking establishments, allowing it to merge the available dollar balances with overdrafts in euros. BOURBON does not have a financial rating from a specialist agency. 3.18.3 Market risks Market risks include the Group’s exposure to interest rate risks, foreign exchange risks, risks on equities and risks on supplies. Interest rate risk The Group’s exposure to the risk of interest rate fluctuations is related to the Group’s medium- and long-term variable rate financial debt. BOURBON regularly monitors its exposure to interest rate risk. This is coordinated and controlled centrally. It is the responsibility of the Assets, Finance and Treasury Director, who reports to the Chief Financial Officer. The Group’s policy consists of managing its interest rate expense by using a combination of fixed-rate and variable-rate borrowing. In order to optimize the overall financing cost, the Group sets up interest rate swaps under which it exchanges, at pre-determined intervals, the difference between the amount of fixed-rate interest and the amount of variable-rate interest calculated on a pre-defined nominal amount of borrowing. These swaps are assigned to hedge the borrowings. As of December 31, 2017, after taking into account interest rate swaps, approximately 44% of the Group’s medium- and long-term debt had been contracted at a fixed interest rate.