DOF Group ASA announced the successful issuance of USD 140 million in Senior Secured US Private Placement Notes for the construction of a Multi-Purpose Field Support Vessel, with funds structured for optimal financial management and long-term operational contracts in Canada.

Target Information

DOF Group ASA (referred to as "DOF") has announced that its wholly owned subsidiary, DOF Seadragon Canada Ltd. (the "Issuer"), has successfully completed a USD 140 million issuance of Senior Secured US Private Placement Notes. These notes are set to amortize over a 15-year period, concluding in 2042, and will feature a fixed coupon rate of 6.24%, with interest payable quarterly. The proceeds from this issuance are designated for financing the construction and delivery of a Multi-Purpose Field Support Vessel, which is currently under construction in Poland, as well as for general corporate purposes.

The vessel is anticipated to be delivered in the first half of 2027 and will commence operations under a firm contract in Canada for a duration of 15 years, with options to extend for an additional 10 years. This transaction is structured as a ring-fenced, non-recourse project financing, encompassing both the construction and operational phases of the vessel. This advantageous structure allows the Issuer to distribute dividends to its parent company from the onset of operations, without requiring additional cash contributions from DOF for yard installments or interest payments. The funding is organized into four delayed drawdowns aligned with the yard's payment schedule.

Industry Overview

The marine industry in Canada plays a crucial role in the nation’s economy, driven by a commitment to research, exploration, and the supply of energy and resources. Canada's strategic geographical positioning provides significant advantages for marine operations, especially in re