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Puma Energy issues US$600m of bonds; Trafigura closes big deals

Credit rating agencies Moody's and Fitch had earlier respectively assigned a Ba2 and BB rating to Puma's proposed bond issue.


SINGAPORE-headquartered oil storage and distribution company Puma Energy, which is reportedly preparing for an initial public offering, has issued US$600 million of bonds due 2024 with a coupon of 5.125 per cent.

This comes shortly after its parent company Trafigura, one of the largest independent oil traders in the world, closed two debt facilities amounting to US$1.99 billion in total.

The senior notes offered by Puma were made in connection with a US$590 million intermediated tender offer made by Merrill Lynch International for its existing senior notes due 2021. Proceeds from the 2024 senior notes will be used to fund the cash portion of the intermediated tender offer, said Puma.

Credit rating agencies Moody's and Fitch had earlier respectively assigned a Ba2 and BB rating to the proposed bond issue, with a stable outlook.

Puma Energy chief financial officer Denis Chazarain said that the order book was in excess of US$2 billion, with a range of orders across all continents.

The firm is looking to list within the next five years, Trafigura's chief financial officer Christophe Salmon said in September.

According to a Reuters report, he said that fundamental preparations for a listing were already in place, but Puma still needed to bring independent directors onto its board and its financial reporting up to the required standards.

Puma is 49.5 per cent owned by Trafigura and 27.9 per cent owned by Angola state-owned oil company Sonangol Holdings; the remainder is held by private investors and employees.

Trafigura earlier last week also concluded major financing deals, closing two debt facilities totalling US$1.99 billion.

These comprise a 365-day US dollar-denominated revolving credit facility worth US$1.175 billion and a three-year US dollar term loan facility worth US$435 million; and a one-year renminbi-denominated tranche worth US$380 million. They will be used to refinance maturing facilities, and go towards general corporate purposes.

The facilities, involving a total of 27 banks, were oversubscribed and upsized from the initial launch amount of US$1.5 billion, said Trafigura.

This marks the fifth straight year that Trafigura has syndicated a renminbi tranche, said Mr Salmon.

ANZ, DBS Bank, ICBC London Branch, National Bank of Abu Dhabi Singapore branch, and UOB were the original mandated lead arrangers and bookrunners.

CTBC Bank and ICBC were the active bookrunners for the renminbi tranche.

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