Shipping

DVB's Floating Production Group and GE acted as joint Mandated Lead Arrangers for the innovative pre- and post-delivery debt financing of Sevan Marine's Driller, a deepwater drilling rig under construction in China. The Sevan Driller is based on the innovative, cylindrical Sevan technology, initially designed for floating production, storage and offloading activities. The unit uses 6th generation drilling technology, and is designed for ultra deepwater (up to 12,000 feet) operations. Upon completion, the Sevan Driller will be chartered for six years to Petrobras Americas Inc. and operate in the US Gulf.

The transaction involved a US$400 million debt facility structured as limited recourse financing, consisting of a pre-completion construction financing of up to US$250 million that converts into a six-year US$350 million amortising term-loan and a US$50 million revolving loan, following delivery of the unit to Petrobras. The facility was fully underwritten by the Mandated Lead Arrangers, DVB and GE; furthermore, it was successfully syndicated to a limited group of international banks, and is partially guaranteed by Garanti Instituttet for Eksportkreditt (GIEK – the Norwegian Export Credit Agency). The facility comes on top of a NOK1 billion subordinated bond issue recently raised by Sevan Marine ASA.

The transaction was awarded "Shipping Debt Deal of the Year 2007 – Europe" by Jane's Transport Finance.