UAE-based SHUAA Capital, the leading asset management and investment banking platform in the region, has completed its leveraged buyout (LBO) financing facility for the acquisition of Allianz Marine and Logistics Services Holding by SHUAA’s managed fund.
This came after securing a $160 million seven-year acquisition finance facility from the National Bank of Fujairah (NBF) and Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution.
The facility is one of the largest Secured Overnight Funding Rate (SOFR) based facilities on 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. As part of the transaction, SHUAA also procured for its managed fund a seven-year interest rate swap (IRS) with NBF to hedge rate exposure.
Jassim Alseddiqi Group CEO SHUAA Capital
“We thank our banking partners NBF and APICORP for their continued support on this acquisition finance transaction. 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. 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 & gas industry in the region.”
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.
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