Topaz Energy and Marine, an offshore support vessel company, announced a new $550 million facility.
The facility is arranged over three tranches. The first is a conventional and Islamic senior secured, term loan of $350 million over seven years which will be used principally to repay existing senior debt. The second is a senior secured, conventional and Islamic Revolving Credit Facility of $100 million over five years and the third tranche is a senior unsecured conventional and Islamic term loan of $100 million, both of which will be used to fund growth capex. The new facility significantly lowers Topaz’s finance costs. The facility will also extend the maturity of Topaz’s debt profile over the next seven years from its previous profile of four years.
Standard Chartered, HSBC, Emirates NBD, Noor Bank, GIB and FGB are the Mandated Lead Arrangers with Standard Chartered and HSBC also appointed as coordinators. Rothschild acted as financial adviser to Topaz on the transaction. Standard Chartered has also taken up the role of facility agent and security agent.
Rene Kofod-Olsen, CEO, Topaz Energy and Marine, said, “Topaz has a clear strategy of harnessing the long-term growth opportunity of the Offshore Support Vessel market. A fundamental part of that strategy is ensuring we have the right capital structure to provide the financing to fund our plans. Securing this substantial facility at highly competitive rates in the current market environment is testament to the banking community’s confidence in Topaz’s business model and future prospects. We have not only secured lower pricing, but have also extended the maturity of our debt profile, which will increase liquidity, lowering Topaz’s overall risk. The new facility gives Topaz the ability to continue to invest in its strategy and capture the long-term growth opportunity of our markets.”
Commenting on the deal and the Bank’s relationship with Topaz, Sarmad Lone, Regional Head of Corporate and Institutional Clients, MENAP, Standard Chartered said, “Standard Chartered Bank
’s Corporate and Institutional strategy aims to further deepen and widen its client relationships across the network and in the Middle East region. This landmark deal is testament to our continuous efforts to support our clients and provide them with innovative structures and solutions that cater to their diverse financial needs. It also further cements our more than 20 year relationship with Renaissance Group and Topaz.”
Ahmed Abdelaal, Regional Head of Corporate Banking and Structured Finance, HSBC Middle
East and North Africa, said, “As a valued client with a strong history with the Bank, we are delighted to be working closely with Topaz Energy and Marine as Joint Coordinator and a Mandate Lead Arranger for issuing the seven year, $550 million facility. Having the right capital structure in place will enable Topaz to continue to invest in its long-term growth strategy. This also demonstrates our strong commitment to building long-term relationships and delivering strategic financing to our prime corporates."