Stephenson Harwood advises lenders on USD160 million leveraged buyout financing for Allianz Marine

Stephenson Harwood LLP has advised the National Bank of Fujairah and Arab Petroleum Investments Corporation (APICORP) on its USD160 million leveraged buyout (LBO) financing facility provided to SHUAA Capital psc (SHUAA) for the acquisition of Allianz Marine & Logistics Services Holding Limited (Allianz).

The deal relates to the announced acquisition by SHUAA, the leading asset management and investment banking platform in the region, of Allianz by its managed funds.

The facility is one of the largest secured overnight funding rate (SOFR) based facilities of its size for an LBO transaction in the Middle East region, and is also one of the few corporate credit facilities in the Middle East with Term SOFR as benchmark pricing. As part of the transaction, SHUAA also procured for its managed fund a seven-year interest rate swap (IRS) from the National Bank of Fujairah, opting to hedge the interest rate risk.

Following the transaction – which is one of the largest M&A deals to occur in the maritime offshore sector within the Middle East region in recent years, and one of the largest in the offshore space globally – SHUAA now manages the largest portfolio of 152 offshore supply vessels in the region, and the fourth largest offshore support vessels (OSV) fleet in the world.

Based in Abu Dhabi, UAE, Allianz is a maritime logistics provider that operates the largest fleet of approximately 117 owned and chartered OSVs in the Middle East. The fleet comprises a combination of platform supply vessels (PSV), anchor handling tug supply vessels (AHTS), crew boats, accommodation barges and flat barges, among others. The company provides a full suite of maritime services including vessel chartering, port logistics, and crew services to clients including leading international and national oil companies and offshore construction contractors.

The transaction enables SHUAA to take advantage of the expected growth in the offshore oil and gas sector, building on its newly consolidated platform – which positions it as a market leader – and taking advantage of the fleet quality and strong ties to national and global oil majors.

The Stephenson Harwood team was led by Dubai-based partner Nijoe Joseph, who was supported by associates Chinar Zaidi and Amulya Appalaraju and paralegal Shwini Dsouza.