Songa Bond – Offshore Services Has the Ticket to Norwegian Bond Market

Last week, Songa Offshore SE successfully concluded a five year senior unsecured bond issue of NOK 1,400 million, at the high end of the proposed range. Led by First Securities, Nordea Markets and Pareto Securities, the offering was priced at par with a floating rate of six month NIBOR + 10%. With the impetus from a commitment in excess of the minimum amount underwritten by a consortium of investors, the deal was oversubscribed and sold mainly to institutional investors. Although the deal saw demand from the US and UK, the deal was largely placed in the Nordic market, which demand has proved vital in most sizeable deals in the Norwegian market this year. Proceeds of the offering will be used for general corporate purposes, including the initial installment of $113 million on the 2nd Cat-D rig. The company used a credit facility to finance the initial payment on the first rig. See the Guts of the Deal below for more details on the terms of the financing.

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