San Antonio Drills for IPO

San Antonio Internacional, the Bermuda-based privately held onshore drill servicer, has filed for an IPO on the Bovespa through a listing of BDRs via Itau BBA, the lead, Credit Suisse and Deutsche Bank. The company, whose assets are spread around Argentina, Mexico, Venezuela, Colombia, Bolivia, Ecuador and Brazil, is heard to be targeting an offering of well above $500m to be launched in September, say executives familiar with the company’s plans. San Antonio is rotating through the LatAm capital markets on a nonstop mission to solidify its capital structure. It just last month closed a $575m multi-part refinancing of a bridge loan, more than 80% of which carries spreads estimated at over 1,000bp over Libor. And it is currently arranging a pre-IPO loan with two of its underwriters that steps up to similarly lofty levels. The $100m 18-month financing will pay Libor plus 550bp in years 1-6, Libor plus 900bp in months 7-12 and Libor plus 1,500bp in months 13-18, according to the prospectus. Itau will take $75m while Deutsche will take $25m in the pre-IPO loan. San Antonio’s subsidiary Demeter also has a BRL50m loan due 2013 with Itau at DI plus 200bp. Bankers away from the deal claim Itau and Deutsche secured IPO mandates thanks in part to their lending capabilities. GP purchased San Antonio from Pride International for $1bn, $600m of which was debt. The company’s indebtedness stands at roughly $700m, according the prospectus, which also states adjusted Ebitda for 2007 was $251m. If San Antonio’s 2008 revenues stay on track with first half adjusted Ebitda of $124m, its current leverage ratio would be roughly 2.8x.