Shuaa Capital announced on Sunday its successful debt buyout of Stanford Marine Group’s AED 1.13 billion ($308 million) facility, a company which charters, builds and repairs offshore support vessels for the oil and gas industry.
The asset management and investment banking platform had been working since 2019 with SMG’s lending syndicate and their advisors to arrive at a buyout deal that would meet all parties’ objectives and strengthen SMG’s liquidity position.
“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,” said Jassim Alseddiqi, CEO of Shuaa Capital.
Following the debt buyout, SMG, a company with a focus on chartering, building and repairing offshore support vessels for the oil and gas industry, is poised for growth. The restructuring transaction has helped save more than 1,800 jobs, and annual exports of close to AED 73,464 ($20 million) worth of UAE-produced vessels.
“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’s business and its contribution to the local economy,” said Alseddiqi.
“We believe this to be one of the few restructuring transactions in recent times to successfully address all stakeholder needs and we hope that this will serve as a template for further such transactions,” he continued.
The investment is part of the Private Markets activity of Shuaa Capital and is held as a co-investment vehicle
Commenting on the buyout SMG’s CEO Elias Nassif said: “Shuaa Capital has managed to pull off a complex restructuring programme 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 the Private Markets activity of Shuaa Capital and is held as a co-investment vehicle. The investment is expected to generate management and performance fee income to Shuaa Capital, in addition to the investment return on its principal investment position.
Last week, Shuaa Capital had announced an investment into the MENA region’s first music streaming platform Anghami as part of its increased focus on technology-related investments.
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