Moody's gives Acu Petroleo notes Ba2

Moody's Investors Service said it gave a first-time Ba2 rating to the planned senior secured notes to be sold by Acu Petroleo Luxembourg Sarl and guaranteed by Acu Petroleo SA in the amount of $650 million and final legal amortization in 2035.

“The Ba2 rating reflects the port's strong asset features, as the only private terminal of oil transshipment in the country, which is strategically located near to pre-salt reserves and mature fields in Campos and Santos Basin. Given the favorable market position the company will benefit from future increases in Brazil's offshore oil production,” Moody’s said in a press release.

The agency noted the debt structure provides added protections to creditors that further support the rating, such as a fully amortizing debt structure that yields to an average debt-service coverage ratio of 1.8x over the life of the transaction; a six-month debt-service reserve account and an operations and maintenance reserve account among other protections.

The proceeds will be used to repay about $233 million in unrated debt and fund reserve accounts for debt service and O&M and to support overall fees and expenses related to the issuance, with remaining proceeds being made available to the shareholders and for general corporate purposes.

The outlook is stable.

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