UAE-based asset management and investment banking firm Shuaa Capital has completed a debt buyout of Stanford Marine Group’s (SMG) AED 1.13 billion ($308 million) facility.
SMG, a diversified offshore services company focuses on chartering, building and repairing offshore support vessels for the oil and gas industry. The restructuring is expected to strengthen SMG’s liquidity position.
The restructuring transaction has helped save more than 1,800 jobs, and annual exports of close to $20 million worth of vessels made in the state-of-the-art Grandweld shipyard’s facility in Dubai Maritime City, according to a statement from Shuaa.
Jassim Alseddiqi, CEO of SHUAA Capital, said: “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.”
Shuaa Capital has been working with SMG’s lending syndicate and their advisors since 2019 to arrive at a buyout deal that met all parties’ objectives, the statement said.
This investment is part of the Private Markets activity of Shuaa Capital and is held as a co-investment vehicle. It is expected to generate management fee and performance fee income to Shuaa Capital, in addition to the investment return on its principal investment position.
(Writing by Seban Scaria; editing by Daniel Luiz)
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