Brazil: OSX Secures USD 1.3 Bln Financing for Acu Shipbuilding Unit

OSX Brasil S.A., a Brazilian publicly held corporation, focused in the provision of equipment and services to the offshore oil and gas industry, by means of integrated operations in shipbuilding, leasing of exploration and production (E&P) units, and operation and maintenance (O&M) services, hereby informs its shareholders and the market that its subsidiary OSX Construção Naval entered into contracts with lending agents BNDES – National Development Bank and CEF – Caixa Econômica Federal for financing with resources from the FMM – Merchant Marine Fund, in the approximate amount of R$ 1.35 billion each, totaling approximately R$ 2.7 billion (approx USD 1.3 Bln).

This R$ 2.7 billion financing is dedicated to the implementation of the Açu Shipbuilding Unit (“UCN Açu”), the largest shipyard in the Americas, which OSX has been building since July 2011 in the north of the State of Rio de Janeiro, and is scheduled to begin partial operations in the first quarter of 2013. UCN Açu’s order book already includes 16 offshore units for oil and gas production in Brazil.

“The Açu Shipbuilding Unit is an extraordinary tool for the development of oil and gas production in Brazil. The financing obtained from the Merchant Marine Fund reaffirms the strategic importance of its implementation for our country”, stated Eike Batista, Chairman of the Company’s Board of Directors.

The loan has 252-month tenure (21 years) for both Financial Institutions, with a 42/36-month grace period for amortization of principal and 36/30-month grace period for payment of interest to BNDES and CEF, respectively. The expected average interest rate is US$ + 3.38% p.a., paid monthly with the amortization of principal after the grace period. The Board of Directors of the Merchant Marine Fund approved this financing priority for OSX in June 2011.

UCN Açu is a 5 th generation shipyard with technology provided by partner Hyundai Heavy Industries, the global leader in naval construction, generating over 10,000 direct jobs. Its 2,400 m quay and expandable to 3,525 m may simultaneously integrate up to 11 FPSOs. Located in the Açu Superport Industrial Complex, UCN Açu is strategically positioned at approximately 150 km from the Campos Basin, which is responsible for around 85% of the Brazilian oil production.

“The fact that OSX has obtained the most important credit line available to the Brazilian Naval Industry is another significant milestone in our working path towards implementing the largest shipyard in the Americas, bringing on board of this project a team of thousands of Brazilians dedicated to professional qualification, technological conquests and the sustainable development of Brazil”, stated Luiz Eduardo Carneiro, CEO of OSX.

[mappress]

Shipbuilding Tribune Staff, June 15, 2012; Image: osx