Norwegian high yield bond market update

Transcription

1 Norwegian high yield bond market update 2 May 2012 DNB Markets Debt Capital Markets

2 Norwegian high yield bond market -2012YTD overview summary and 2012 YTD : USD bn of new HY bonds 35 HY issuances Oil and Offshore segments represent 77% of the volume Solid volume issued by first time issuers High new issuance activity during 1H, significant slowdown in 3Q. Pickup in Q with windows of opportunities DNB Markets was Lead Manager on ~0% of the issuances 2012: High activity YTD in new issues USD 3.bn HY new issue volume As many of the Norwegian repeat issuers tapped the market with unsecured corporate issues during, activity going forward is expected to be lead by secured project structures More newbuild projects are expected to be financed in the bond market, as the bank market remains challenging Sources: DNB Markets and Stamdata HY Issue volume # of Deals Cumulative volumes raised Deal Volume (USD mill.),500,000 3,500 3,000 2,500 2,000 1, YTD Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec YTD Sector breakdown DNB Markets HY indices 1 Industry 12% Shipping 1% Seismic 1% Seafood 2% Other offshore % Q3 Q Accomm. 3% 1 The DNB Markets' High Yield Bond Indices each comprise ten equally weighted issues (minimum remaining tenor of at least two years) representing a significant portion of Norwegian high yield bond trading volume; the Indices are rebalanced each January, April, July and October; Eitzen Chemical and Equinox Offshore removed from the CCC index in February 2012 resulting in a significant spread decline Deal Volume (MUSD) E&P 8% FPSO 3 % Q3 Q 2012 OSV 13% 2012 Number of deals 3,500 3,000 2,500 2,000 1, Rig 38% Deal Volume (USD mill.) Spread (bps) 1, Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 BB (left axis) B (left axis) CCC (right axis)

3 28 new HY bond issues in 2012 totaling $3.bn (35 issues / $.1bn for the full year ) Trade Date Issuer DNB shadow rating Currency Amnt (mill) Tenor (yrs) Coupon Spread (bps) Listing Sector Teekay LNG Partners NOK FRN 525 OSE Shipping Norwegian Air Shuttle NOK FRN 550 OSE Aviation Odfjell SE B+/B NOK FRN 575 OSE Shipping I.M. Skaugen SE NOK FRN 900 OSE Shipping OSX 3 Leasing B.V. USD Fixed 850 OSE Offshore Stolt-Nielsen Limited BB/BB- NOK FRN 75 OSE Shipping Stolt-Nielsen Limited BB/BB- NOK 00 3 FRN 375 OSE Shipping Hurtigruten ASA B+/B- NOK FRN 700 OSE Shipping Viking Supply Ships AS NOK FRN 775 OSE Offshore BW Offshore Limited BB+/BB NOK FRN 25 OSE Offshore Aker ASA BB+/BB+ NOK FRN 00 OSE Industry Deep Drilling USD 20 3 Fixed 1350 n.a. Offshore BWG Homes ASA NOK FRN 50 OSE Real Estate Northland Resources AB USD Fixed 1187 OSE Mining Northland Resources AB NOK 60 5 Fixed 1187 OSE Mining Pacific Drilling S.A. B/B- USD Fixed 760 n.a. Offshore I.M. Skaugen SE NOK 00 3 FRN 825 OSE Shipping SinOceanic II AS USD Fixed 930 ABM Shipping DOF Subsea AS B+/B NOK FRN 625 OSE Offshore Seadrill Ltd. BB+ NOK 1,250 2 FRN 325 OSE Offshore Austevoll Seafood ASA NOK 00 5 FRN 00 ABM Seafood Farstad Shipping ASA BB/BB- NOK 00 5 FRN 20 OSE Offshore Bonheur ASA BB/BB- NOK FRN 50 OSE Offshore Bonheur ASA BB/BB- NOK FRN 500 OSE Offshore DOF ASA B+/B NOK FRN 725 OSE Offshore Prosafe SE NOK FRN 375 OSE Offshore Teekay Offshore Partners BB/BB- NOK FRN 575 OSE Offshore Aker ASA BB+/BB NOK FRN 500 OSE Industry Source: DNB Markets, Stamdata and Bloomberg Note: Ratings are DNB Markets Credit Research shadow ratings at issuance Data per 30/0/2012

4 Teekay Offshore Partners NOK 600M 5 years Jan 2012 Teekay Offshore Partners NOK 600 Million Sr. Unsecured bond Joint Lead Manager January 2012 Terms of the offering Issuer: Teekay Offshore Partners L.P. Incorporated: Marshall Islands Principal Amount: NOK 600 million Issuer Rating: BB Issue Rating: BB- Status: Senior Unsecured Issue Date: January 27, 2012 Maturity Date: January 27, 2017 Issue Price: At par Coupon: 3 months NIBOR % p.a. Trustee: Norsk Tillitsmann ASA Website: DNB Role: Joint Lead Manager Background and additional information Background Proceeds to be used for general partnership purposes Company World's largest owner and operator of shuttle tankers (0 shuttle tankers) Market leader in harsh weather FPSO operations (3 FPSOs) Listed on NYSE with a market cap of USD 1.9 bn Stable revenues from a strong portfolio of fixed rate contracts with major oil companies Total forward fixed rate revenues of USD.1 bn, > 0% of backlog from Statoil Weighted average remaining contract life of 5.0 years Strong sponsor in Teekay Corporation provides industry experience and contacts Net debt/ebitda of.5x LTM Market value of equity/enterprise value of ~50% Transaction highlights Broadly distributed transaction, with more than 100 investors in the book Fleet: Business overview Avg. contract duration: Forward revenues: World's largest operator of shuttle tankers # of vessels 0 36 Teekay Offshore Shuttle Tankers 0 shuttle tankers 32 owned chartered- in newbuildings Floating Production Storage & Offloading (FPSO) 3 owned FPSO Units Petrojarl Varg Cidade de Rio das Ostras Sevan Piranema Existing Newbuildings on order KWOT Transpetro PJMR/Viken Lauritzen Source: Clarkson Research Services, Platou, Company websites, Industry sources Floating Storage & Offloading (FSO) 5 Conventional Tankers 5 owned FSO Units 10 owned tankers 8 Aframaxes 2 lightering vessels 5.6 years.2 years 3.6 years 3.6 years USD 2.7 bn USD 0.9 bn USD 0.2 bn USD 0.3 bn Source: DNB Markets and Company information Source: DnB Markets

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