By Paul A. Harris
Portland, Ore., June 9 – Norway-based DNO ASA priced $400 million of 8¾% five-year senior bonds at 87.5 to yield 12½% on Monday, according to an informed source.
ABG Sundal Collier, DNB Markets, Fearnley Securities and Pareto Securities acted as joint lead managers and bookrunners.
The deal primarily played to investors outside of Scandinavia, including investors in the United States, the source said.
“The bond placement received strong investor demand across international markets and its combination of a fixed coupon rate and an original issue discount was designed to meet market yield expectations while reducing the debt service impact on the company’s operating cash flow,” DNO stated in a Tuesday press release.
Proceeds will be used to call the company’s existing krone-denominated bonds and lock in a substantial foreign exchange gain, among other purposes.
Oslo-based DNO is an oil and gas operator.
| Issuer: | DNO ASA
|
| Face amount: | $400 million
|
| Proceeds: | $350 million
|
| Maturity: | June 16, 2020
|
| Securities: | Senior bonds
|
| Bookrunners: | ABG Sundal Collier, DNB Markets, Fearnley Securities, Pareto Securities
|
| Coupon: | 8¾%
|
| Price: | 87.5
|
| Yield: | 12½%
|
| Trade date: | June 8
|
| Settlement date: | June 16
|
| Ratings: | Non-rated
|
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