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Renaissance unit hires banks for $350m bond

Muscat, October 21, 2013

Topaz Energy and Marine, a subsidiary of Oman's Renaissance Services, has hired Goldman Sachs, HSBC and Standard Chartered to arrange a five-year $350 million bond offering, sources close to the deal said on Monday.

Goldman Sachs is the lead bookrunner and HSBC and Standard Chartered are co-bookrunners for the planned senior notes issue, two sources close to the deal said.

Topaz, which announced the borrowing plans in a statement earlier on Monday, declined to comment on its choice of banks.

The proceeds from the planned bond will be used to refinance certain existing loans, fund capital expenditure and increase cash on the balance sheet, Topaz said in a statement. The notes will be guaranteed on an unsecured basis by certain of Topaz's subsidiaries, the company said.

"Even though the company has not disclosed any details yet, it feels to me that this could be a high yield offering targeting risk-seeking investors," said Joice Mathew, head of research at United Securities in Oman.

"The issue should help Topaz secure financial independence from the parent company and reduce its dependence on Renaissance Services for funding."

Topaz provides support vessels to offshore oil producers in the Middle East and North Africa as well as Caspian nations Azerbaijan and Kazakhstan.

Its parent company Renaissance Services pulled a $500 million initial public offering (IPO) of Topaz in London in 2011, amid concerns whether it would get an acceptable valuation and growing regional unrest at the time. - Reuters




Tags: Oman | Goldman | Renaissance |

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