SBM Offshore has concluded the pricing of $850 million in senior secured notes by its Guara Norte subsidiary, owner of a floating production, storage and offloading vessel called Cidade de Ilhabela.
SBM owns 75% of the equity in Guara Norte and the remaining 25% equity is held by Japanese conglomerate Mitsubishi.
The transaction is expected to close on 11 February, when notes will be issued on the Singapore Stock Exchange.
The notes were priced at 99.995% of par value, with a 5.198% fixed coupon paid semi-annually, fully amortsing over a 13.5-year term.
The deal was significantly oversubscribed, Netherlands-based floater giant SBM sid on Tuesday.
This issuance is SBM’s first issuances with a 144A/Reg S bond, which diversifies sourcing for project debt.
Proceeds will be used to repay existing bank debt of approximately $535 million, with a remaining tenor of approximately four years and unwind hedge arrangements.
About $280 million of the remaining cash will be distributed to Guara Norte’s shareholders, SBM stated.
The Cidade de Ilhabela FPSO produces oil and gas on the Sapinhoa field in Brazil's Santos basin, and is under charter to state-controlled oil company Petrobras .