GE and WestLB's drilling vessel deal closes oversubscribed

Last Updated April 21, 2008

GE and WestLB have closed syndication oversubscribed for an acquisition financing for Peregrine I, an offshore drilling vessel in Brazil.

The US$259mn senior facility was underwritten by GE Transportation Finance and GE Energy Financial Services with WestLB in New York.

Syndication was launched in February, and proved to be popular, despite the challenges of a tightening global syndications market.

The deal was structured as a US$233.8mn seven-year amortising acquisition loan paying 200 basis points over Libor, and a US$25mn seven-year dry docking loan also paying 200bp. Repayments will be derived from a long-term charter contract with Petrobras.

The funds are being used by Mike Mullen Energy Equipment Resource's acquisition of the Peregrine I vessel from a subsidiary of Transocean, based in Houston. Peregrine I is under contract with Brazil's Petrobras and is drilling in the Atlantic Ocean of the coast of Brazil.

Sponsors on the deal are Mike Mullen Energy Equipment Resources, a Dallas-based offshore asset investor; Pareto Worldwide Offshore; a Norwegian private equity fund and G Energy Financial Services, a unit of GE.