DOF Subsea - Bond issue - NOK 900 million

DOF Subsea has successfully raised NOK 900m in the Nordic bond market. The transaction was well received in the market and achieved significant investor attention.

Transaction details – DOF Subsea AS:

  • Issuance of NOK 900m bond, senior unsecured
  • The net proceeds from the bonds shall be used to (i) partly refinance the NOK 508 million senior unsecured bond issue DOFSUB07 and (ii) for general corporate purposes   
  • NOK 35m bought back of DOFSUB07 @ 104 and USD 26 million bought back of DOFSUB08 @ 104. Trade date 14 November 2018
  • Tenor: 5 years
  • Pricing: 3M NIBOR +800bps (issued at par)
  • Covenants in line with earlier bond issues (ICR > 2.5x or cash > 400m, equity > NOK 3,000m)
  • Investor meetings carried out in Singapore, Hong Kong, Stockholm, Helsinki, Oslo, Copenhagen, London and NYC
  • Meetings commenced with oil price at ~USD 80/bbl, which dropped below ~USD 70/bbl
  • Book opened 8 November and closed 13 November 16:00 CET
  • Strong demand on launch, sufficient to cover deal within the range
  • Quality book with long only investors forming the biggest portion of demand
  • Expected settlement date 27 November 2018
  • Arctic acted as joint lead manager

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