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The Abu Dhabi-based HEA Energy has raised $550 million in a three-year senior secured first lien bond with a 8.75% coupon and a reoffer price of 99.33% of par. IPTs were in the range of 9.125 – 9.375% (coupon equivalent yield with a possible inclusion of up to 2 points of Original Issue Discount).
The issuance has a borrowing limit of $650 million.
MM Mirage Bluewater II Limited (Cayman Island) is listed as the issuer, with HEA Energy TopCoLimited (Parent), each Vessel Owning SPV and each intermediate holding company, named as guarantors.
Proceeds will be used to refinance existing debt, newbuild capex, permitted payments and general corporate purposes.
The first lien security on the issuance includes mortgages over collateral vessels that include 16 on-the-water and 13 newbuild self-propelled self-elevating support vessels and offshore support vessels. Other security includes share pledges, earnings account pledges, assignments of earnings, intercompany loans, subordinated loans and insurances.
According to restrictions placed, 75% of net cash proceeds will be applied to acquire a new collateral vessel or, if not reinvested, to redeem bonds at lower of the first call price and the applicable call price.
A listing on Euronext ABM will take place within 12 months.
The bond terms include an undertaking to, within 12 months, to obtain bonds and parent ratings from two of Moody’s, S&P and Fitch.
DNB Carnegie, Fearnley Securities and Pareto Securities (B&D) are the global coordinators and joint bookrunners on the deal.
Founded in 2022, HEA Energy operates in offshore marine logistics, specialising in jack-up barges, accommodation vessels, and battery-powered subsea vessels.
(Writing by Bindu Rai, editing by Daniel Luiz)
