Financing the next generation in offshore technology
Counted by the provision of the number of beds, Hoofddorp-based, Seafox is the market leading global offshore accommodation jack-up company, providing services to support the oil & gas and offshore wind industry. It owns and manages 12 self-elevating jack-up units, offering its customers a wealth of experience in accommodation and crane support, well testing and workover, transport, installation and decommissioning.
One of its highest-spec assets is Seafox 5, which is designed to withstand harsh offshore environments and is capable of operating throughout the year in water depths of up to 65 metres. The vessel, specifically designed to service both the oil & gas and offshore wind industry, is the result of joint venture between Seafox Group and Keppel Offshore & Marine of Singapore.
Seafox was looking for a more cost-efficient way of financing its original Seafox 5 investment. It required a combination of liquidity and operational flexibility to repay a shareholder loan and cover performance guarantees under its contracts.
We acted as agent, mandated lead arranger for a EUR 88.5 million senior secured term loan and revolving credit facility. Additionally, we provided several hedging products, to mitigate interest rate and forex risks.
Through creative thinking and close cooperation, we were able to provide increased leverage to Seafox, and structure a multi-currency transaction with related hedging solutions.
Our successful fit-for-purpose solution has given Seafox greater financial flexibility and a more cost-efficient capital structure. The transaction not only provided an optimized debt structure, it also gave the necessary flexibility to place guarantees under its operating contracts, while decreasing interest and foreign exchange risks.
NIBC has been fundamental in the past and we hope, the future of the Seafox5. The Seafox 5 has had a variety of clients and projects it has worked on. As the jack up is versatile in the markets it operates in, Seafox and Keppel have looked for a financing solution that is also flexible and “bends” along its utilization and its customers: NIBC has been able to provide that flexibility but still remain at very competitive terms. We look forward to extending that relationship. - Leidus Bosman, Regional CFO Seafox