Topaz Marine, a unit of Oman's Renaissance Services, priced its $350 million debut bond, a statement from the parent firm said on Sunday, in a rare high-yield transaction from the Gulf Arab region.
The five-year offering carried a coupon of 8.625 percent, the bourse filing from Renaissance said, adding that the issue was oversubscribed by investors. It did not elaborate.
The final interest rate was tighter than the initial guidance given on Thursday of between 8.75 and 9 percent.
High-yield bond offerings from the Gulf are rare because local corporates can access bank finance at a much cheaper rate. However, there are a number of reasons for borrowers to go down the high-yield route, including the ability to secure longer-term money and diversify sources of funding.
Topaz will use the money raised from the bond to repay existing debt, increase cash on its balance sheet and fund an expansion of its fleet of offshore support vessels, the statement added.
Goldman Sachs was lead bookrunner and HSBC and Standard Chartered were co-bookrunners for the bond, which can be redeemed by the issuer after three years.
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