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Global investment banking firm, StormHarbour Securities, and international lawyers, Clyde & Co, have acted as sole financial and legal advisors respectively for a debt buyout of Stanford Marine Group’s AED 1.13 billion (US$ 308 million) facility by Shuaa Capital. According to Stormfront the result has been a successful outcome for all parties involved, including the participating banks.
Stanford Marine is one of the leading offshore services companies in Middle East, with a focus on chartering, building and repairing offshore support vessels for the oil and gas industry. Currently the Dubai-headquartered company owns and operates a fleet of more than 35 offshore supply vessels, including Platform Support Vessels (PSVs), anchor handlers and crew boats.
Shuaa Capital worked with Stanford Marine’s syndicate of banks, as well as StormHarbour, and Clyde & Co, to conclude a transaction that achieved all parties’ objectives, through the raising of equity and debt from both local and international investors.
Stormharbour’s George Giannakis, Head of Real Assets Group, commented: “This is a landmark transaction since it marked the first successful restructuring transaction in the offshore space in which the borrower managed to retain its entire fleet, strengthen its balance sheet, while providing a fair and full-exit solution to its outgoing lenders.”
The restructuring strengthens Stanford Marine’s liquidity position and, following the debt buyout, it is now poised for future growth, while also aiming to take advantage of opportunities for consolidation in the offshore sector. The restructuring transaction has also helped save more than 1,800 jobs, and annual UAE exports of close to US$ 20 million from the shipbuilding sector.
Saad Ashraf, Head of Middle East & Africa at StormHarbour, added: “The transaction managed to attract significant investor interest out of our global investor base, marking the return of international capital to the regional offshore marine sector despite the Covid-related challenges. Our local banking relationships coupled with our international footprint were key in helping our clients in this complex transaction.”
