Single Buoy Moorings Inc. (SBM) has announced the successful completion of US$450 million of non-recourse senior secured debt by way of a US Private Placement (USPP) for the Deep Panuke Production Field Centre in Nova Scotia, Canada.
The 3.5% fixed coupon bond is rated BBB- / BBB (low) by Fitch and DBRS respectively and carries a 7 year maturity. The offering was oversubscribed with fourteen institutional investors participating.
The Deep Panuke gas field is located 250km south east of Halifax, Nova Scotia (Canada). Production began in 2013 and it is expected to continue for a mean production life of 13 years. The project will produce a total of 25.1 E9M3 or 8.92 billion cubic feet (Bcf) of natural gas. The platform is designed to produce up to 300 million cubic feet of natural gas per day.
EnCana sells 100 percent of gas output from Deep Panuke to Spain's Repsol, as agreed in 2009.
In November 2007, EnCana announced that it had entered into an agreement with SBM for the provision and operation of the Deep Panuke production field centre.
This is the company’s second time to tap the Private Placement market following the October 2012 FPSO Cidade de Anchieta USPP. Proceeds from this placement will be used to reimburse both a bridge loan put in place in April 2014 and inter-company shareholder loans.