By Aleesia Forni
Columbus, Ohio, March 22 - Schahin II Finance Co. (SPV) Ltd. priced a $750 million issue of 5 7/8% 10-year amortizing senior secured notes (Baa3/BBB-/BBB-) at par on Wednesday, according to market sources.
The yield printed at the tight end of price talk, which was set in the 6% area
Nomura, Morgan Stanley, Deutsche Bank and Mizuho are the joint bookrunners.
The legal maturity is Sept. 25, 2023, while the expected maturity is Sept. 25, 2022.
The average life is 7.5 years.
Amortization is uneven and begins in the second semester after closing.
For collateral, the company will use its newly built ultra-deepwater drillship, receivables from charter and services contracts, owner shares, trust accounts, insurance proceeds and Cerrado residual payment rights.
The company, a part of Rio de Janeiro-based oil operator Schahin Petroleo e Gas SA, plans to fund $90.8 million of reserve accounts at closing.
Proceeds will be used to refinance a loan provided to the company to purchase the vessel.
| Issuer: | Schahin II Finance Co. (SPV) Ltd.
|
| Amount: | $750 million
|
| Legal maturity: | Sept. 25, 2023
|
| Expected maturity: | Sept. 25, 2022
|
| Securities: | Senior secured notes
|
| Bookrunners: | Nomura, Morgan Stanley, Deutsche Bank, Mizuho
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Trade date: | March 21
|
| Settlement date: | March 28
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 6% area
|
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