Noble Group to raise $3bn debt at higher interest rates

According to sources, Noble Group is planning to raise up to $3bn in bank debt as part of its refinancing plan outlined earlier.

Noble could pay an interest rate of 225 basis points over the U.S. dollar Libor on a $1 billion one-year unsecured loan, more than twice the 85 basis points it paid just a year ago.

Further, Noble’s credit facility of about $2 billion would be backed by trade flows and inventories, with an announcement expected this week.

The number of lead arrangers on the unsecured loan was eight banks, which compared with 15 on a loan last year.

According to sources, Societe Generale, Mitsubishi UFJ Financial Group, ING and HSBC were among the lead arrangers on the transaction. 

The debt issuance is part of the company’s Chief Executive Yusuf Alireza’s plan to sell assets, cut business lines and trim debt.

Source:  Reuters

Hercules Offshore reports net loss of $26.9m for 1Q’16

Offshore-drilling vessel-provider Hercules Offshore reported a net loss of $26.9m, or $1.35 per diluted share for the 1Q’16 period, vs. net loss of $57.1m a year ago.

Revenues declined to $50.9m for the same period vs. $122.6m a year ago.

Company CEO John T. Rynd attributed the loss to continued weakness in the offshore drilling markets as oil prices declined, making its customers reduce their drilling activities.

The company had filed for bankruptcy in August 2015 and had emerged from it in November 2016.

Separately, the company had entered into a forbearance agreement with lenders last month and continues to explore options such as a potential recapitalization, business combination or other alternative strategic transactions, including the potential sale of its vessel Hercules Highlander, and a restructuring of its term loan.

Post-bankruptcy, the company had raised a $450m term loan to utilize $200m of it to pay its remaining installment on the Hercules Highlander vessel. The forbearance agreement has led to the company to explore selling its yet-to-acquired vessel.

Source: PR Newswire

P.S. Kindly refer to the one-page credit report on Hercules Offshore highlighting the company’s progress through bankruptcy.

Calumet reports 1Q’16 loss of $67.7m; looks at asset divestments

U.S-based Calumet Specialty Products posted a 1Q’16 loss of $67.7m or 87 cents per share, as compared to a profit of $23.8m, or 27 cents per share, a year ago. The news comes on the company’s earlier announcement that it expected a net loss between $59 – 83m for the same period.

Revenues for the 1Q’16 period declined 29% yoy to $713m (1Q’15: $1bn).

The company, which owns 10 refineries across the U.S., attributed the dismal performance to the effect of collapsing oil prices as its fuel products business suffered due to weaker refining margins.

In light of the weak results, the company’s CEO Tim Go stated that the company would look to divest some of its assets, including the $430m refinery that opened a year ago in western North Dakota.

The refinery, with an operating capacity of 20,000 bpd, currently processed output worth 15,000 bpd. Calumet plans to operate the refinery at 75% of capacity due to the weakening commodity prices.

Source: IBJ

Warren Buffet’s Berkshire Hathaway registers a 32% growth in profits in 4Q’15

Net income for 4Q’15 rose to $5.5bn as compared to $4.2bn a year ago. For FY’15, profit was $24.1bn vs. $19.9bn a year ago.

Operating earnings excl. investments, was $2,843 per share, beating estimates of $2,814 a share.

Profits of its rail road business of BNSF fell 9.2% to $1.1bn on lower demand for coal.

Berkshire Hathaway Energy, its utility unit, generated a profit of $423m, an 18% rise over the previous period.

The insurance business of BH Reinsurance and General Re registered an underwriting gain of $306m vs. $119m a year ago.

Source: Bloomberg

 

 

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