Shuaa Capital helps Dubai-based Stanford Marine Group with a $308mn debt buyout

UAE-based leading asset management and investment banking platform SHUAA Capital has successfully completed a debt buyout of Stanford Marine Group’s (SMG) $308 million (AED 1.13 billion) facility, resulting in a successful outcome for all parties involved, including the participating banks.

Dubai-based SMG is one of the Middle East’s most prominent and diversified offshore services firms, with an emphasis on chartering, building, and repairing offshore support vessels for the oil and gas sector.

SHUAA Capital has been working with the lending syndicate of SMG and its advisors since 2019 to arrive at a buyout agreement that met the goals of both parties. This restructuring will strengthen the liquidity position of SMG.

“Despite the COVID-19 lockdowns last year, we continued to lead discussions with the SMG lenders’ advisors and worked collaboratively to reflect the changing needs of the consortium while finding a viable solution that worked in the best interest of all parties involved. We are proud to have achieved so much with this deal – from supporting banks to exit a distressed debt situation with a cash recovery, to retaining jobs for over 1,800 employees and sailors and sustaining their livelihoods, and finally ensuring continuity of SMG business and its contribution to the local economy.”

Elias Nassif, CEO of Standford Marine Group said, “SHUAA Capital has managed to pull off a complex restructuring program effectively giving the company a new lease of life. We are excited and hopeful of our future growth under the direction of a world-class management team and with the strong support of our employees and shareholders.”

This investment is part of SHUAA Capital’s Private Markets operation and is kept as a co-investment vehicle. Furthermore, it intended to generate management fees and performance fee income for SHUAA Capital, in addition to the investment return on its principal investment position.