Norwegian oil and gas operator DNO has announced that it has completed a private placement of $400 million of subordinated hybrid bonds with a coupon rate of 10.75%. 

 

The hybrid bonds will have the first call at 100% of nominal value after 5.5 years, with coupon step-up after six years and maturity in 2085. The bond placement met strong investor demand across US, Nordic and international markets and was significantly oversubscribed.

 

"This first hybrid bond issue capitalizes on our 24-year flawless record in the bond market," remarked  DNO’s Executive Chairman Bijan Mossavar-Rahmani. 

 

"Given its features, including treatment as equity not debt on DNO’s balance sheet, a hybrid bond fits well with our financing structure following closing of the Sval Energi Group AS acquisition later this month," he stated.  

 

Settlement is expected on or about June 17, subject to customary conditions precedent. 

 

An application will be made to list the bonds on the Oslo Stock Exchange. Proceeds from the new bond issue will be used to refinance financial indebtedness in Sval Energi and for general corporate purposes,  said the statement.

 

Arctic Securities AS, DNB Carnegie, part of DNB Bank ASA, and Pareto Securities AS acted as Joint Bookrunners for the transaction. AGP Advokater AS acted as legal advisor to the company.-TradeArabia News Service