OSX Considers FPSO Bond Return

Brazil’s OSX is evaluating funding options for its next floating production, storage and offload (FPSO) project, including another project bond, CEO Luis Eduardo Carneiro and IR official Daniela Castro tell LatinFinance. “With OSX-4 the intention is to work in a similar way to OSX-3, and in the second half of the year look at a bond like OSX-3,” Castro says. The planning is still preliminary, but it would look to raise about $600m in the US or Norwegian market, she says. The shipbuilder raised $500m in 9.25% 2015 bonds in March to fund OSX-3. The first 2 OSX FPSO platforms were financed in the loan market, but Castro says the high-yield bond market is deeper and more preferable. OSX has not begun considering options for OSX-5, she says. Norwegian shop Pareto Securities was global coordinator on the OSX-3 bond, and joint lead with DNB Market.