Paratus Energy Services Ltd - Successful placement of USD 500 million new bonds

BY PR Newswire | CORPORATE | 06/05/24 12:27 AM EDT

HAMILTON, Bermuda, June 5, 2024 /PRNewswire/ -- Paratus Energy Services Ltd.(the "Company" or "Paratus")?announces that it?hassuccessfully?completed a private placement of USD 500 million of new five-year senior secured bonds with a coupon rate of 9.5%.

The bond issue attracted strong investor demand and was significantly oversubscribed.?The proceeds from the new bond issue will be used towards partial refinancing of the Company's existing USD 715 million notes.?

"Paratus has successfully completed one of the largest bond issuances?seen?in the Nordic bond market in the last few years," said Robert Jensen, Executive Director of Paratus. "We are pleased that we have achieved our goal of refinancing?a?substantial portion of the USD?715 million 2026 notes well ahead of?its maturity.?With?our significant?backlog?position,?strong margins and the majority of our debt not maturing until 2029, the?Company has significantly increased its flexibility to pursue shareholder distributions and growth?opportunities."

Settlement is expected to occur on or about 27 June 2024, subject to customary conditions precedent, and an application will be made for listing of the bonds on?the?Nordic ABM.?

Arctic Securities, DNB Markets and Pareto Securities acted as Global Coordinators and Joint Bookrunners, and ABG Sundal Collier and Fearnley Securities acted as Joint Bookrunners.

Ducera Partners LLC?acted as?financial advisor and Schj?dt?acted?as legal advisor to Paratus.?Thommessen?acted?as legal advisor to the Joint Global Coordinators and Joint Bookrunners.?

About Paratus

Paratus Energy Services Ltd. is an investment holding company of a group of leading energy services companies. The Paratus Group is primarily comprised of its ownership of?Fontis?Energy and a 50/50 JV?interest?in Seabras.?Fontis?Energy is an offshore drilling company with a fleet of five high-specification jack-up rigs working under contracts in Mexico. Seabras is a leading subsea services company, with a fleet of six multi-purpose pipe-laying support vessels under contracts in Brazil. In addition, Paratus is the largest shareholder in Archer Ltd, a global oil services company, listed on the Oslo Stock Exchange. For further information visit?www.paratus-energy.com

CONTACT:?
paratus@hawthornadvisors.com?

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SOURCE Paratus Energy Services Ltd

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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