The agreement establishes the terms and conditions for the R$2.8 billion long-term facility, of which R$2.3 billion will be funded upon closing and used to fully amortize the existing bridge-loans granted by the Bank. Bradesco and Santander will act as on-lenders for this facility. The remaining dacility amount of R$ 500 million will be used to fund port construction and will be provided by a third on-lending bank yet to be identified. The total tenor of the approved facility is 18 years with four years of grace period and 14 years of amortization. The transaction will be concluded upon execution of contracts.
With this facility, Prumo Logística has total consolidated long-term debt of R$3.3 billion, including R$1.0 billion of long-term debentures.
“Eliminating the mismatch between our existing long-term contracts and our short-term liabilities will allow Prumo to continue its commercial ramp-up and realize the vision of the Port of Açu. Since EIG’s investment and the 2013 restructuring we have taken Açu from a partially constructed project to a fully operational port-complex that is open for business. We are very proud to accomplish this on-time and on-budget while also commercializing this flagship asset, all of which allowed us to earn this level of endorsement from our lenders” said Eugenio Figueiredo, Prumo’s CFO.
Since the start of operations at the Açu Port in 2014, Prumo has signed a series of commercial contracts and has expanded its operations with the development of new terminals. Operations at the Açu Port’s crude oil terminal are scheduled to begin in 2016 with transshipment of crude oil for BG´s upstream operations. Operations at Açu Port’s multicargo terminal started this week with bauxite from Votorantim arriving at the Port´s yards. The terminal has capacity to handle over 4 million tonnes per year of bulk materials, containers and cars for which Prumo is negotiating with additional anchor clients. Edison Chouest is developing the largest offshore support base in the world at Açu Port to fulfil a contract to operate for Petrobras. The offshore support base is scheduled to begin operations [4Q 2015] allowing Açu Port to service virtually every offshore oilfield supplier that currently operates or is seeking to operate in Brazil. Manufacturing facilities of NOV, Technip and Wartsila have begun operations at the port and are currently delivering crucial, locally manufactured oilfield equipment to Petrobras’ offshore projects in the deepwater. BP will begin the distribution of marine fuels at Açu Port as early as [1Q 2016] in a 50/50 joint-venture with Prumo. [Finally, Groupo Bolognesi and Prumo have signed an MoU for creation of the Açu Gas Hub which provide solutions for LNG, domestic gas and thermal power, with first gas for clients at the port as early as 2017].
These operations are part of Prumo’s strategy to deliver unparalleled logistics solutions to offshore oil & gas and other industrial clients in order to lower their costs and make these Brazilian industries more competitive on a global basis.
About Prumo
Prumo is a company that owns and operates Açu Port. Prumo offers infrastructure solutions for the oil & gas industry in addition to hosting a range of industrial, manufacturing and marine clients and projects at Açu Port.
Located in the North of Rio de Janeiro state, Açu Port started its operations by the end of 2014 and serves with excellence and safety leading companies in their sectors, such as NOV, Technip, Edison Chouest, Petrobras,Wartsila, BP and BG.
The Açu Port is composed by Terminal 1 (T1 – offshore), Terminal 2 (T2 – onshore) and a back area of 90 km².
T1 is dedicated to handling iron ore and oil. Operational since October 2014, the terminal has shipped more than 25 capesize ships full of iron ore for Anglo American. Oil transshipment operations will begin in 2016 and will receive VLCCs ships. Recently, a contract was signed for oil transshipment with BG for 20 years, for handling an average volume of 200,000 barrels per day.
Terminal 2 is installed in the vicinity of a channel for navigation, which has 6.5 km long, 300 meters wide and depth of at least 10 meters throughout its length, reaching 14.5 meters. Along the T2 terminal, Technip, NOV, InterMoor and Wartsila unit plants were installed and now are all operating. Later this year, are expected to enter into operation the BP Prumo terminal to distribute marine fuels (bunker), the terminal of Petrobras in the support base of Edison Chouest Offshore and general cargo terminal (TMULT).
