Floatel marketing $475 million 5.5-year secured notes in first- and second-lien tranches

By Paul A. Harris

Portland, Ore., Sept. 27 – Floatel International is in the market with a $475 million two-part offering of senior secured notes due in April 2024, according to market sources.

The deal includes $375 million of first-lien notes which are talked at 9% to 9½%.

The junior portion of the deal is comprised of a $100 million tranche of second-lien notes. Talk on the second-lien piece remains to be announced, a London-based sellside source said.

An investor roadshow was expected to wrap up late in the Sept. 24 week, the sellsider added.

Fearnley Securities and Pareto Securities are the joint lead arrangers for the Rule 144A and Regulation S offering. SEB and Swedbank are the joint lead managers.

The 5.5-year notes in both tranches become callable after 2.5 years at par plus 50% of the respective coupons.

The Hamilton, Bermuda-based provider of human habitats designed for hostile environments plans to use the proceeds, along with $126 million of cash on hand, to repay its existing $549 million term loan B and to make a $32.5 million partial prepayment of its bank vessel facility.

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