Latham & Watkins LLP has acted as international counsel to the joint lead underwriters on a convertible bond offering by a finance subsidiary of Malaysian oil and gas service provider SapuraCrest Petroleum Berhad.
Singapore-based partners Paul Supramaniam and Michael Sturrock led the US firm's team on the deal, which involved US$80m 2.5% guaranteed convertible bonds due 2009 - which included a fully exercised greenshoe option of US$10m - by SapuraCrest Dana SPV, a Labuan incorporated offshore company and wholly-owned subsidiary of SapuraCrest. Hong Kong partner, John Otoshi, supported Latham's Singapore team, while London-based partner, Chris McFadzean, represented the Trustee.
Commerce International Merchant Bankers Berhad (CIMB) Labuan was the sole global coordinator, and acted together with Credit Suisse First Boston (Hong Kong) Limited as joint lead managers and joint bookrunners for the transaction, which was oversubscribed by investors in Asia, UK and Europe.
Partner, Chan May May, led the Zaid Ibrahim & Co team acting as local counsel to the underwriters. Partner, Zandra Tan, led the Zul Rafique & Partners team acting as issuer's local counsel. As Latham was sole transaction counsel to the underwriters, there was no international counsel to the issuer.
The SapuraCrest CB issuance was the 24th instrument listed on the Labuan International Financial Exchange (LFX), with some commentators suggesting it signifies an increasing confidence on the part of Malaysian corporations and issuers on the opportunities offered by LFX in meeting their capital needs.
SapuraCrest is an oil and gas service provider based in Malaysia and its principal businesses are installation of pipelines and facilities, offshore oil and gas drilling, provision of offshore geotechnical and geophysical services, and other marine services including hook-up and commissioning, underwater inspection and maintenance services, and operations and maintenance.
The proceeds from the issuance is intended to be used for investment/ capital expenditure, repayment of borrowings and the general working capital requirements of the SapuraCrest group of companies. ALB