KUALA LUMPUR: Yinson
Production, the offshore energy business of Yinson Holdings Bhd, has priced US$1.458bil in senior secured notes to refinance existing debt related to its Agogo floating production, storage and offloading (FPSO) vessel.
In a statement, Yinson Production said the notes were issued by Yinson Azalea Production Pte Ltd, which owns the Agogo FPSO operating offshore Angola.
The notes are fully amortising with a scheduled maturity of 13.3 years and were priced at 98.164% of their principal amount with a fixed coupon of 6.517% per annum payable semi-annually.
“The proceeds from the transaction will be used to, amongst other things, refinance the existing outstanding debt related to the Agogo FPSO, fund reserve accounts as required under the new bond issue (unless funded by a reserve account facility), pay for transaction-related fees and expenses, and for equity distributions from excess proceeds,” Yinson Production said.
The notes are expected to settle on Oct 21, with an application made for them to be admitted to trading on the London Stock Exchange's International Securities Market.
Fitch and Moody's have assigned expected ratings of BBB+ and Baa2, respectively, to the notes.
The Agogo FPSO is leased to Azule Energy Angola S.p.A. and operates at Block 15/06 offshore Angola under a 15-year firm bareboat charter, with extension options of up to five years.
Yinson Production chief financial officer Markus Wenker said the transaction was the company's third FPSO project bond in three years.
The company said the US$1.458bil issuance was its largest FPSO project bond to date and its first FPSO project bond outside Brazil.
