SOURCE: WestLB AG

December 19, 2007 17:29 ET

WestLB Serves as Lead Arranger With GE Unit in Brazilian Offshore Drilling Deal for Peregrine I

NEW YORK, NY--(Marketwire - December 19, 2007) - WestLB's Latin American Group announced today that it acted as Mandated Lead Arranger and Bookrunner along with GE Energy Financial Services for USD 259 million in senior debt facilities for the acquisition of an oil drillship operating in deep water off the coast of Brazil. WestLB also serves as Administrative Agent under the facility.

The funds will be used by Mike Mullen Energy Equipment Resource Inc. for the acquisition of Peregrine I, a deepwater drillship under contract with Petrobras S.A., one of the world's largest oil and gas companies and Brazil's largest company. A portion of the funds will also be used to fund capital expenditures under an upgrade program for the drillship.

WestLB worked closely with GE Energy Financial Services and GE Transportation Finance to deliver a comprehensive and integrated equity and debt financing solution for the client.

"This financing expands and complements WestLB's expertise in the offshore oil and gas sector, and is further evidence of the continuing importance of deepwater oil exploration offshore Brazil," said Claus Hertel, an Executive Director at WestLB's Latin America Group. "Furthermore, for both the client and Petrobras, a key asset in exploring deepwater reserves will be maintained in Brazil."

The Peregrine I is drilling in the Atlantic Ocean off the coast of Brazil. Peregrine I is rated to drill in 5,200 feet of water to a depth of 25,000 feet. A subsidiary of Etesco Construções E Comércio Ltda, an experienced Brazilian offshore rig operator, will operate the vessel under a services contract with Petrobras. Mike Mullen Energy Equipment Resources, a Dallas-based offshore assets investor, and Pareto World Wide Offshore, a Norwegian private equity fund, are also investors in the Peregrine I.

The financing is structured as a seven year senior secured term loan with repayment derived from a long-term charter contract with Petrobras.

About WestLB Capital Markets

WestLB develops sophisticated structured solutions through a team of highly experienced investment banking and capital markets professionals. WestLB has a long-standing presence in the corporate, structured and asset-backed financing sectors supporting clients' needs with capital commitments, advisory services and innovative financing solutions. The bank's global relationships, coupled with its unique understanding of local economies, industries and cultures, help WestLB bankers consistently deliver high quality advice and service.

About WestLB

WestLB AG is one of Germany's leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, structured finance, capital market and private equity products, private banking, asset management, transaction services and real estate finance. WestLB has total assets of EUR 280 billion, as of September 30, 2007. For more information, please visit www.westlb.com.

In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC.

(NOTE: 3rd Quarter Earnings Release as of September 30, 2007, distributed to public on December 6, 2007)

Contact Information

  • Contact:
    WestLB AG - Group Communications - Americas

    Ashweeta Durani
    Ph: 212-852-6310
    Email Contact

    or

    Connie J. Kain
    Ph: 212-597-1439
    Email Contact