Shuaa Capital has completed its leveraged buyout (LBO) of Allianz Marine and Logistics Services with $160 million Secured Overnight Funding Rate-based (SOFR) acquisition finance facility from National Bank of Fujairah (NBF) and Apicorp.

 

The transaction includes a seven-year interest rate swap (IRS) with NBF to hedge rate exposure.

 

Shuaa, a leading asset management and investment banking platform in the region, has won the financiers' confidence in the regional offshore support vessels (OSV) sector and its strong sponsor credentials.

 

Largest SOFR

The facility is one of the largest SOFR-based facilities of its size for an LBO transaction in the region. Allianz’s financing is also one of the few corporate credit facilities in the Middle East with Term SOFR as benchmark pricing. 

 

A leading maritime logistics player, Allianz operates the largest fleet of approximately 117 owned and chartered OSVs in the Middle East, including a combination of Platform Supply Vessels (PSV), Anchor Handling Tug Supply vessels (AHTS), crew boats, accommodation barges, and flat barges. The company also provides 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.

 

The acquisition of Allianz is Shuaa managed fund’s second strategic investment in the OSV sector following the acquisition of Stanford Marine Group (SMG), a Dubai-based OSV operator and established player in the Middle East for over 20 years. 

 

152 OSV vessels

With the Allianz acquisition, Shuaa’s managed fund now includes the largest portfolio of 152 OSVs 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.

 

Jassim Alseddiqi, Group Chief Executive Officer of Shuaa Capital, said: "NBF and Apicorp (Arab Petroleum Investments Corporation), an energy-focused multilateral financial institution, are at the forefront of supporting the growth of Energy and Shipping sectors in the Middle East, and this transaction is 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. 

 

“The interest rate swap against the facility provides us interest cost visibility and protection against rising rates. We look forward to working with all stakeholders to further develop SMG and Allianz businesses and contribute to the long-term growth of the offshore oil and gas industry in the region."

 

Second OSV deal

Neill Robertson-Jones, Head of Corporate Banking at National Bank of Fujairah, said: “This is the second OSV deal that NBF's Energy and Marine Segment, has signed with Shuaa. Not only is this a testament to the strong relationship we have built with Shuaa, but it also reflects our confidence in Allianz's strengths to capitalise on growth opportunities in the offshore oil and gas sector, which is a priority sector for us.”

 

Nicolas Thevenot, Managing Director Corporate Banking at Apicorp, said: “We are pleased to join with NBF in supporting Shuaa on this financing as part of our commitment to supporting the sustainable development of the Mena region's energy sector through innovative financial solutions. 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 is a high-value addition to our growing portfolio of impact-driven investments."-- TradeArabia News Service