The joint venturebetween Keppel and US private equity firm Oaktree Capital said it is contemplating issuing a $650m term loanmaturing May 2020.
Floatel said the net proceedsfrom the loan will be used to refinance existing project finance loans forFloatel Superior, Floatel Reliance (both built 2010) and Floatel Victory (built 2013) as well as existing $200mbond.
TheOslo-listed company said it has concurrently received commitments for a $100mrevolving credit facility and a $270m delivery financing for Floatel Endurancewith $250m accordion for Floatel Triumph from a club of commercial banks.
The Floatel Enduranceand Floatel Triumph are under construction at Keppel FELS in Singapore and aredue for delivery January 2015 and December 2015.
An accordion is a type of option that a company canbuy that gives it the right to increase its line of credit or similar type ofliability with a lender.
Companies typically purchase anaccordion feature in anticipation of the need for more working capital forpossible expansion opportunities.
The term’s origin is derived from how an accordion canbe pulled and stretched in a manner that lengthens its total size.
Floatel Internationalwas established in 2006 to satisfy a market demand for a new generation ofoffshore floatels.
