SBM Offshore Raising Money for FPSO Refurbishment

SBM Offshore priced its first US Private Placement project bond of US$ 500 million for the FPSO Cidade de Anchieta.

Yesterday, SBM Offshore successfully priced an inaugural US$ 500 million US Private Placement project bond with 16 Institutional Investors. The bond which is rated Baa2/BBB by Moody’s and Fitch carries a 5.5% fixed coupon for a 15 year maturity.

“This is the first transaction issued for an FPSO in the US Capital Markets, and SBM Offshore is very pleased with such diversification of funding sources,” the company said in a statement.

The proceeds of this placement will be used to fund the refurbishment of the FPSO Cidade de Anchieta, which started its service for Petrobras on 10 September of this year under an 18 year lease and operate contract. Closing of the transaction is expected to occur by the end of October.

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Press Release, October 11, 2012