SYNDICATED: Gulf Marine Services
Deal Size: US$340 million Arrangers: Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, First Gulf Bank, Qatar Islamic Bank, Noor Islamic Bank, United Arab Bank, Al Hilal Bank, Ajman Bank, Mubadala GE Capital and Mashreq Lawyers: Gibson, Dunn & Crutcher for the obligor and White & Case for the arrangers Shariah Advisors: Abu Dhabi Islamic Bank Rating: Unrated Date: June 2013
The 2013 syndication market was active with a number of mega deals across markets as well as well-targeted smaller syndications in local markets. Although the CityCentreDC deal represents the opening of a new market, the method is the tried and true Istisnah. Astra Sedaya Finance was remarkable as the first Wakalah syndication for Indonesia. The Saudi ARAMCO Mobile Refinery relied on Tawarruq.
The Gulf Marine Services deal is structured to provide a flexible secured facility to the company and to provide for future cash needs, an uncommon
feature in Murabahah deals. Gulf Marine Services is a regional leader in the provision of services requiring self elevated support vessels and anchor handling tug supply vessels. Generally, the asset-heavy company serves the oil, gas and renewable energy sectors. In addition to vessels, the company offers offshore accommodation, well maintenance, project management, construction and installation services.
The complex Ijarah transaction allowed Gulf Marine Services to re-pro?le of existing debt into a multi tranche facility, fund a US$80 million dividend, finance expansion, and meet ongoing working capital requirements. The deal is secured with an assignment of contracts, mortgage over vessels, with a low investment-to-value ratio. The deal has covenants and credit enhancements which include a cash sweep. The Ijarah is structured to facilitate an uncommitted line to future capital expenditures and business expansion.