Yinson Production has placed $1.035 billion senior secured notes to refinance the floating, production, storage and offloading (FPSO) vessel Anna Nery, working for Petrobras in the Marlim field, offshore Brazil.
The successful pricing of $1.035 billion 144A/Reg S non-recourse, senior secured notes, was issued by Yinson Boronia Production, which owns and operates the FPSO Anna Nery for Petrobras under a 25-year contract.
Yinson Production holds 75% and Sumitomo Corporation holds 25% of the shares in the issuer. The notes are fully amortising with a maturity of 18.2 years and were priced at a fixed coupon of 8.947%, payable semi-annually starting on July 31, 2024.
The proceeds of the notes are used to, among other uses, refinance the existing outstanding debt of FPSO Anna Nery maturing in 2026, unwind hedge arrangements, fund reserve accounts as applicable, pay for transaction related fees and expenses, and for distributions to Yinson Production and Sumitomo Corporation as shareholders of the Issuer.
The notes are being sold to qualified institutional buyers in the United States, and to persons outside the United States, in accordance with international securities laws.
“We are very pleased with the response from the capital markets to the notes issue, which was significantly oversubscribed. The successful notes issue is a testament to the strength of the underlying asset and the confidence investors have in Yinson Production as the best-in-class independent owner and operator of FPSOs.
“The refinancing of FPSO Anna Nery is another step in diversifying our funding base and optimising our capital structure to support further growth and drive long-term value for Yinson Production. At the same time, investors in the notes enjoy upside potential through the uncapped investment grade structure of the notes, whilst the strong credit fundamentals of FPSO Anna Nery provide downside protection,” said Markus Wenker, Chief Financial Officer of Yinson Production.
“As the JV partner, we would like to express our sincere appreciation to the project team and other partners for their dedication and hard work in accomplishing the milestone of the notes issue.
“This achievement will strengthen our confidence that our JV partnership with Yinson Production through the FPSO Anna Nery will strengthen the market potential for providing Brazil's local economy and opportunities worldwide with such lease and operate asset service businesses, which contributes to the stability and security of the energy supply,” added Kazuki Yamaguchi, Sumitomo Corporations’s General Manager of Maritime Energy Solution Strategic Business Unit.
To remind, FPSO Anna Nery started production in May 2023, as part of Petrobras’ revitalization project of the Marlim and Voador fields.
The unit can produce up to 70,000 barrels of oil daily and process 4 million m³ of gas.