Odebrecht Offshore Drilling Finance Ltd, the oil services company controlled by Brazilian construction giant Grupo Odebrecht SA, hired the investment banking units of Banco Santander SA, HSBC Holdings Plc and BNP Paribas SA to manage a sale of at least $500 million in global bonds, a source with knowledge of the situation said on Wednesday. Cayman Islands-based Odebrecht Offshore also mandated investment banks Bradesco BBI, Itaú BBA and Morgan Stanley & Co as bookrunners for the senior bond, which will mature on Oct. 1, 2022, said the source, who declined to be identified because the transaction is in the works.
The notes will be guaranteed by units and project companies ODN Tay IV GmbH, ODN I GmbH, Odebrecht Drilling Norbe Six GmbH and ODN Tay IV GmbH, the source added. Proceeds from the transaction will be used to help ODN Tay IV GmbH repay a project finance loan. The transaction is expected to be rated "Baa3" by Moody's Investors Service, and "BBB" by Standard and Poor's and Fitch Ratings.
A sale depends on market conditions, said the source.