SBM Offshore, the provider of floating production solutions to the offshore energy industry, has completed a US$450 million of non-recourse senior secured debt by way of a US Private Placement (USPP) for the Deep Panuke Production Field Centre (PFC).
The 3.5% fixed coupon bond is rated BBB-/BBB (low) by Fitch and DBRS respectively and carries a 7 year maturity. The offering was oversubscribed with fourteen institutional investors participating.
This is the Company’s second time to tap the Private Placement market following the October 2012 FPSO Cidade de Anchieta USPP.
Proceeds from this placement will be used to reimburse both a bridge loan put in place in April 2014 and inter-company shareholder loans.
The PFC or platform is located on the Scotian Shelf in 44 m of water about 250 km southeast of Halifax. Four wells can produce natural gas at Deep Panuke. The gas is transported from the platform to shore via a subsea pipeline.