SAO PAULO, Brazil--(BUSINESS WIRE)--Fitch Ratings has assigned the following rating to the notes issued by Schahin II Finance Company (SPV) Limited (the Issuer), a company based in the Cayman Islands:
--USD750 million senior secured notes 'BBB-'; Outlook Stable.
Fitch's rating addresses the likelihood of timely payment of interest on a semi-annual basis and the ultimate payment of principal by legal final maturity in September 2023.
The notes are backed by the flows related to the charter agreement signed with Petroleo Brasileiro S.A. (Petrobras) for the use of the dynamically positioned ultradeepwater drillship called 'Sertao' for the term of 10 years. Schahin Petroleo e Gas S.A. (Schahin P&G), the oil and gas arm of Brazilian-based Schahin Group (Schahin), is the operator of the drillship and primary sponsor of the transaction. The Sertao vessel is the seventh oil rig expected to become online within Schahin's fleet. The proceeds of the issuance have in large part been used to refinance a loan taken to pay the Samsung Heavy Industries Shipyard for construction of the vessel.
Deutsche Bank Trust Company Americas, as indenture trustee on behalf of the noteholders, has been assigned a collateral package that includes a pledge of the shares of Dleif Drilling LLC, the owner of the vessel, as well as a mortgage on the rig.
Fitch considered the following factors in its credit analysis: the strategic importance of the Brazilian oil and gas industry, Petrobras' (Fitch Issuer Default Rating 'BBB') role as off-taker to the charter agreement, the quality of Schahin P&G as sponsor of the transaction and operator of the rig, overall leverage and liquidity, and the structural protections in place, among other factors.
A detailed description of the criteria applied in the analysis is provided in Fitch's report titled 'Schahin II Finance Company (SPV) Ltd.', which is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Sources of information used to assess this rating were Schahin Engenharia S.A., Nomura Securities International Inc., ABS Consulting Inc., ODS-Petrodata, Inc., and Rigzone.com, Inc.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria', Aug. 4, 2011;
--'Rating Criteria for Infrastructure and Project Finance,' Aug 16, 2011.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Rating Criteria for Infrastructure and Project Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648832
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