Moody's lifts PGS

Moody's Investors Service said it upgraded PGS ASA's corporate family rating to B3 and B3-PD probability of default rating. Concurrently Moody's affirmed Petroleum Geo-Services AS' $450 million backed senior secured Nordic bond B3 rating. The outlook is stable. These actions conclude the review for upgrade started on March 6.

On Friday, the company placed a $450 million bond with a 13˝% coupon and a four-year maturity with a bond issue price of 98, resulting in a yield to maturity of about 14%. The upgrade mirrors the successful bond placement, Moody’s said.

The proceeds and balance sheet cash will be used to pay for the transaction fees and reduce the term loan balance, which was $738 million as of Dec. 31, due in March 2024 to $138 million. The $50 million super senior loan due in March 2024 remains in place.

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