Norton Rose Fulbright advises Yinson Production on us$1 billion project bond to refinance FPSO Anna Nery

The firm provided comprehensive legal advice to Yinson Production on its issuance of US$1.035 billion in senior secured bonds due 2042. These funds were earmarked specifically for the refinancing of existing debt associated with the floating production, storage, and offloading vessel (FPSO) Anna Nery.

Yinson Production, in partnership with Sumitomo Corporation, owns Yinson Boronia Production B.V., the entity managing FPSO Anna Nery. This vessel is currently deployed in Brazil's Marlim field under a long-term contract with Petrobras.

The senior secured bonds issued by Yinson Production are fully amortizing and carry a fixed coupon rate of 8.947%. Moody's and Fitch, leading credit rating agencies, assigned these bonds ratings of Ba1 and BB+, respectively, reflecting their confidence in the financial stability and creditworthiness of the project.

The bond offering, which was a Rule 144A / Reg S non-recourse transaction, was managed by Citigroup and Santander as Global Coordinators. HSBC, ING, J.P. Morgan, and Natixis served as Joint Bookrunners, with Mizuho, Ramirez & Co., Inc., Standard Chartered Bank, and Bladex acting as Co-Managers.

Norton Rose Fulbright's role in the transaction extended to providing legal counsel on various aspects of US federal securities law, New York law, English law, Singapore law, and Dutch law. Additionally, the firm advised on a Letter of Credit (LC) facility to collateralize reserve accounts, enhancing the structure of the financing.

Ben Rose, a partner at Norton Rose Fulbright, highlighted the international collaboration involved in the deal, which spanned multiple jurisdictions and offices. The firm's ability to coordinate seamlessly across time zones was instrumental in achieving the successful completion of this complex transaction within a short timeframe.

Markus Wenker, Chief Financial Officer of Yinson Production, expressed satisfaction with the bond issue, noting the strong interest from investors and their confidence in Yinson Production's management and the FPSO's operational performance.

Overall, the transaction underscores Norton Rose Fulbright's capabilities in managing complex cross-border financial transactions and Yinson Production's reputation as a leader in the FPSO sector. With the successful completion of this project bond, Yinson Production has demonstrated its ability to access the international capital markets effectively to support its strategic growth initiatives.