Helix takes ‘meaningful step’ towards its energy transition model by closing Alliance deal
Houston-headquartered offshore energy services provider Helix Energy Solutions has completed the acquisition of Louisiana-based, privately-held Alliance group of companies, enabling it to expand its decommissioning presence in the Gulf of Mexico.
Back in May 2022, Helix revealed that it had entered into a definitive agreement to acquire 100 per cent of the equity interests of the Alliance group of companies for $120 million cash at closing, plus the potential for post-closing earnout consideration payable in 2024, in the event the Alliance business achieves certain financial metrics in 2022 and 2023.
In an update on Tuesday, Helix announced the completion of the acquisition of all of the equity interests of the Alliance group of companies, expanding its decommissioning presence in the Gulf of Mexico shelf and advancing its environmental, social and governance (ESG) initiatives by “responsibly supporting end-of-life requirements of oil and gas projects.”
Owen Kratz, President and Chief Executive Officer of Helix, remarked: “We are pleased to have completed our acquisition and added Alliance to the Helix family, which complements Helix’s existing deepwater abandonment offerings by adding shelf and facility abandonment capabilities and significantly enhances our position as a full-field abandonment services provider. The acquisition marks a meaningful step in our participation in the energy transition, and we are excited to welcome our new colleagues to the Helix family.”
In conjunction with its acquisition of Alliance, Helix has amended its existing asset-based revolving credit facility (ABL Facility), expanding the eligible credit line and establishing a link in its pricing to sustainability targets.
According to the firm, the key features of the amendment include an increase of the size of the ABL Facility to $100 million; and the inclusion of ESG/sustainability-linked performance targets that may result in adjustments to commitment and borrowing rates.
“We have increased the size of our ABL Facility to accommodate the increase in our expected borrowing base with the Alliance acquisition. We are also pleased to have included a sustainability-linked performance target that may reduce our fees under the facility and we are appreciative of the support from our bank group in this amendment,” concluded Kratz.
When it comes to Helix’s most recent deals in the Gulf of Mexico, it is worth noting that the U.S. player inked a multi-year contract with Shell Offshore in April 2022 for the provision of well intervention services.