UAE: Topaz Enters USD 380 Million Refinancing Deal

UAE Topaz Enters USD $380 Million Refinancing Deal

UAE-based Topaz Energy and Marine, a leading oilfield services multinational and subsidiary of Renaissance Services, has announced a US$ 380 million financing initiative, led by Standard Chartered Bank and DVB Bank.

The initiative will involve both regional and international lenders in a refinancing deal that features Topaz’s offshore support vessel (OSV) division, Topaz Marine, which ranks among the top ten OSV operators world-wide.

In its half-year statement, the parent-company Renaissance Services, publicly listed in Oman’s Muscat Securities Market, stated its intention to refinance some existing borrowings and consolidate financing facilities with a syndicate of banks.

Vishal Goenka, Chief Financial Officer of Renaissance, said, “This deal will significantly improve Topaz’s liquidity, unlock trapped equity, and increase the availability of new funds to capitalize on future growth opportunities. The interest from our relationship banks and also from new banks in this deal is very encouraging and reaffirms the market’s appreciation of the company’s business model and governance. Out of US$ 380 million, approximately US$ 125 million is for vessels under construction and for investments in new vessels. ”

Goenka added that the company expects the financing initiative to be completed before the end of December 2011.

Strong Support

“This financing, including a hunting license for additional vessel growth, puts Topaz in a unique position to accelerate from an enhanced balance sheet platform,” said Geir Sjurseth, Managing Director & Global Head Offshore Support Group of DVB Bank.

DVB Bank, which specializes in global offshore finance, is an active player in the Middle East market. “We are delighted to expand our excellent relations with Topaz and its parent company Renaissance to support the company’s continued growth objectives. DVB has gained considerable expertise dealing with Topaz through its MENA, Caspian and non-Caspian vessel operations, and we will continue to support the leading OSV operator in its core markets,” added Sjurseth.

Commenting on the alliance, Nigel Anton, Managing Director and Head of Shipping Finance at Standard Chartered Bank, said, “Standard Chartered is delighted to be able to strengthen our relationship by supporting Topaz with their ambitious growth plans; our co-arrangement of this transaction together with DVB Bank underpins our belief in the future success of Topaz. Standard Chartered as a well-capitalized and liquid bank remains fully committed to the region and the shipping business.”

Source: Renaissanceoman, November 2, 2011