Lead arranger, underwriter and sole bookrunner WestLB has closed its US$488mn senior secured credit facility for Delba Drilling International Cooperative in Brazil. The financing is supporting the construction, and operation of an ultra-deep water semi-submersible offshore drilling platform, off the coast of Brazil.
The deal structure features a US$100mn tranche provided by the Inter-American Development Bank (IADB) under the bank's A/B loan programme.
Credit facilities comprise three tranches: a project loan, a contingency/working capital loan and a mobilisation loan. The project loan is a 10.5-year construction and term loan facility of up to US$460mn to finance up to 80% of the project costs. The contingency/working capital facility of up to US$12mn will finance up to 50% of potential construction cost overruns after the contribution of US$12mn in contingent equity from the sponsors and initial working capital.
The third tranche is a short-term facility of up to US$16mn to finance the mobilisation and transportation of the drilling rig from Abu Dhabi to Brazil.
Syndication of the facility was successful, particularly given the involvement of the IADB. It was placed with banks active in the marine business, including Dexia Bank, KfW, Depfa, Itau BBA, Natixis, Cifi and Nordkap.
WestLB also acted as financial advisor and arranger for the borrower, and placed US$130mn of financial equity for the project, initially provided by MPC Capital.
The rig was constructed at a well-known Abu Dhabi shipyard owned by Gulf Piping company. Engineering, procurement and construction (EPC) contracts were signed with Single Buoy Moorings (SCM).
The project finance facility is secured by seven-year charter and services contracts between the project and Brazil's Petrobras, within the framework of the PROMINP programme.
(Click here to read more on PROMINP and a full deal analysis on Delba in GTR, November/December 2007)
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