Yinson subsidiary prices US$1.46 billion Agogo FPSO bond
The notes carry a fixed annual coupon of 6.52%, with settlement scheduled for Oct 21.
Yinson Azalea Production Pte Ltd said on Oct 7 that it had priced senior secured notes totalling US$1.46 billion (RM6.21 billion) for the Agogo floating production, storage and offloading (FPSO) vessel. The issuer is an indirect wholly-owned subsidiary of Yinson Holdings Bhd.
According to Yinson Production, the offering is the largest FPSO project bond issuance to date. Its chief financial officer, Markus Wenker, said this was the company’s third FPSO project bond in three years.
Pricing was set at 98.16% of principal. The notes have a fixed annual coupon of 6.52%, with payments made semi-annually, and a fully amortising maturity schedule of 13.3 years. Settlement is scheduled for Oct 21.
Yinson said the proceeds would go towards refinancing Agogo FPSO-related debt, funding required reserve accounts and paying transaction fees. The offering would also fund a distribution of excess equity.
The vessel is leased to Angolan oil and gas producer Azule Energy Angola SpA. through a firm bareboat charter lasting 15 years, with an extension option of up to five years. Yinson Production said the notes received expected ratings of BBB+ from Fitch and Baa2 from Moody’s.
