NASCO Energie & Rohstoff AG has completed an $83m securitization transaction to refinance the debt secured by its helium assets at DBK Field in Arizona, US.
Hamburg, Germany-based NASCO is the controlling shareholder of the DBK and has a long-term supply agreement with Praxair Inc., a Linde plc company, in the US.
Guggenheim Securities, LLC served as Sole Structuring Advisor and Sole Bookrunner on the transaction which was sold to an investment group led by Nuveen, a New York-based investment firm.
‟We are extremely pleased with the confidence shown in us by the investment community that recognises the strength of our assets, management and our development plan,” said NASCO CEO Jan Warstat.
“The ability to raise investment grade capital that has been rated by a leading Rating Agency in New York significantly reduces our interest exposure and adds to the net cash flow to the company as well as underscoring management confidence in our assets. Nasco believes the DBK project is the first ABS transaction for a company that drills, completes, refines and sells its own helium, underscored by a 13-year long-term supply contract.”
NASCO has been making targeted investments to expand their helium activities since 2014. Previously, their helium production focused solely on a site in Arizona with the Navajo name Dineh-bi-Keyah (DBK), which is located in Northeast Arizona, an area known as the Four Corners region.
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