Bond money-spinner for contractor pair

by on September 27, 2012 2:28 pm BST

Norwegian engineering giant Aker successfully raised
Nkr1 billion ($175 million) in a domestic bond issue that was oversubscribed,
with the cash earmarked for general corporate purposes.

UK-based Subsea 7 raked in a bumper haul of $600 million
from a convertible bond issue – $100 million above its targeted figure – and
this could increase to $700 million if an over-allotment option is exercised,
with the cash to be used for general spending and expansion.

Despite the European sovereign debt crisis, there appears to
be no shortage of takers for corporate debt in the industry – especially for
companies with solid business prospects – with rig giant Seadrill having raised
$1 billion in an unsecured bond issue earlier this month that was wrapped up in
a matter of hours.

Meanwhile, Golar LNG Partners is also targeting an unsecured
bond issue in the Norwegian market, while French seismic player CGGVeritas has
launched a rights offering to raise about €414 million ($532 million) to help
finance its newly announced acquisition of Fugro’s geoscience division, with
bond issues also lined up.