Leading asset management and investment banking firm SHUAA Capital has secured a $160 million seven-year acquisition finance facility from National Bank of Fujairah (NBF) and Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution.
The financing facility is for the acquisition of Allianz Marine and Logistics Services Holding Limited (Allianz) by SHUAA’s managed fund.
The facility is one of the largest Secured Overnight Funding Rate (SOFR) based facilities of its size for an LBO (leveraged buyout) transaction in the region, SHUAA said.
Allianz’s financing is also one of the few corporate credit facilities in the Middle East with the term SOFR as benchmark pricing.
As part of the transaction SHUAA also entered into a seven-year arrangement with NBF to hedge the interest rate risk.
A leading maritime logistics player, Allianz operates the largest fleet of approximately 117 owned and chartered offshore support vessels (OSVs) in the Middle East, including a combination of platform supply vessels, anchor handling tug supply vessels and flat barges.
The company also provides a full suite of maritime services such as vessel chartering, port logistics, and crew services to clients including leading international and national oil companies and offshore construction contractors.
Jassim Alseddiqi (above), Group chief executive officer of SHUAA Capital, said the transaction was a testament of their commitment to the growth of regional champions.
“The SOFR-based financing solution demonstrates our dynamism to quickly adapt to the evolving trends in the financing markets. We are also pleased to have secured the interest rate swap against the facility that provides us interest cost visibility and protection against rising rates,” Alseddiqi said.
He also said the firm was looking forward to working with all stakeholders to further develop SMG and Allianz businesses and contribute to the long-term growth of the offshore oil & gas industry in the region.
Nicolas Thevenot (above), managing director of corporate banking at APICORP said Allianz’s high-quality asset base and the critical support it provides to the OSV sector in expanding offshore exploration and production activities in the region was a high-value addition to their growing portfolio of impact-driven investments.
The acquisition of Allianz is SHUAA managed fund’s second strategic investment in the OSV sector, after the acquisition of Stanford Marine Group, a Dubai-based OSV operator.
With the Allianz acquisition, SHUAA’s managed fund now includes the largest portfolio of 152 offshore supply vessels in the region and the fourth largest OSV fleet in the world.
SHUAA expects the combination of two of the region’s leading OSV operators to deliver significant revenue and cost synergies and economies of scale on an annual basis.
Follow us on
