Bloomberg News

OSX’s Subsidiary Receives $850 Million Syndicated Loan

October 26, 2011

(Updates with CFO comment in third paragraph.)

Oct. 26 (Bloomberg) -- OSX Brasil SA, the shipbuilding company controlled by Brazilian billionaire Eike Batista, received a $850 million syndicated loan to finance the construction of its second oil platform.

ING Groep NV, Banco Itau BBA SA and Banco Santander SA led the transaction, according to a regulatory filing today from the Rio de Janeiro-based company. The 12-year loan has a 4.41 percent interest rate above the Libor, compared with the 4.25 percent it paid last year for an 8 1/2-year loan.

The OSX-2 platform will begin production in mid-2013 at fields operated by OGX Petroleo & Gas Participacoes SA, Batista’s oil company. OSX aims to supply OGX with 48 offshore units worth $30 billion over the next decade to accelerate production in shallow waters of the Campos Basin.

“The financing for OSX-2 under the negotiated conditions, and considering the current credit scenario of the global economy, reaffirms the solidity and consistency of OSX’s projects,” Chief Financial Officer Roberto Monteiro said in the statement.

The company is building a shipyard in Rio de Janeiro state to meet requirements for locally produced machinery and supply equipment to other oil producers including state-controlled Petroleo Brasileiro SA.

--Editor: Carlos Caminada, Dale Crofts

To contact the reporter on this story: Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net

To contact the editor responsible for this story: Taís Fuoco at tfuoco1@bloomberg.net


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