Schahin Plots Holdco Debut

Schahin Oil and Gas is heard targeting a $685m bond, according to Fitch, which assigns a BB minus rating. The Brazilian oil services provider has sold multiple project bonds, but the sale is to be a debut at the senior level. Schahin is scheduled to start a four-day roadshow Thursday in Boston and visit Los Angeles on Friday. It will then visit accounts in London the following Monday before wrapping up in New York Tuesday. A 7-year or 10-year tenor is heard being considered, with proceeds used to refinance subordinated debt at some of its subsidiaries as well as debt at the holding company level. Citi, Deutsche Bank, HSBC and Mizuho are managing the investor meetings. A deal would follow a $750m project finance bond issued in March last year which was backed by flows from a 10-year service contract with Petrobras. BB+/BB minus Brazilian oil services provider Queiroz Galvao Oleo e Gas’ (QGOG) $700m 2018 bond debut will be used as a pricing reference point.