Oceânica Engenharia, a Brazilian provider of subsea services to the oil industry, launched a tender offer to repurchase the bulk of its international 2029 bonds, and said it intends to fund the transaction with a new notes offering.
The company is looking to buy back up to $400 million of the $525 million outstanding on its 13% 2029 senior secured notes, it said Monday in a press release. It is offering to pay investors $1,080 for every note tendered by May 1 and thereafter $1,040 through May 18.
The company will proceed with the buyback provided it has the support of bondholders holding at least 66% of the targeted amount.
Oceânica intends to fund the tender offer with a Rule 144A/Reg S offering, it said in a filing.
The dealer managers are Goldman Sachs, Itaú BBA, BTG Pactual, Santander, Bradesco BBI and UBS.
The company issued $375 million worth of 2029s when it made its cross-border debut in 2024 and added $150 million the following year.
Oceânica was downgraded deeper into junk by Moody’s last year citing slower-than-expected revenue coming from new service contracts.