SEACOR Marine Holdings Inc. recently announced it has acquired UP Offshore (Bahamas) Ltd. through a new joint venture firm whose 51 percent stake is owned by Proyectos Globales de Energía y Servicios CME’s subsidiary and 49 percent by a subsidiary of SEACOR Marine.
According to reports, UP Offshore’s equity was acquired for nominal consideration and the company’s debt was refinanced with about $95mn of new indebtedness. Of the total amount, $70mn loan is provided by the existing lenders of UP Offshore in the form of a new six-year debt facility. This new facility is non-recourse to CME and SEACOR Marine or any of their respective subsidiaries.
A $15mn loan from Mantenimiento Express Marítimo, (MEXMAR), an existing joint venture in Mexico between CME’s and SEACOR Marine’s affiliates, went to UP Offshore. The amount would be utilized in funding capital expenditures in UP Offshore fleet’s two vessels which have awarded firm employment contracts in Brazil.
The remaining $10 million loan was from the new joint venture of CME and SEACOR Marine to fund UP Offshore’s working capital requirements. This amount is subordinate to new bank debt facility which would be funded with around $5mn capital contribution from each of CME’s and SEACOR Marine’s respective subsidiary. Apparently, Clarksons Platou Securities AS was UP Offshore’s advisor, and DNB Markets, Inc. was MEXMAR’s advisor in this transaction.
President of CME and MEXMAR, Alfredo Miguel, and John Gellert, Chief Executive Officer of SEACOR Marine mentioned in a joint statement that they have grown MEXMAR to a fleet of 15 vessels during the past seven years, all registered and documented in Mexico. Through the new joint venture of both the companies, they would have a significant presence in Brazil.
The two officials added that they were able to utilize their joint venture capital efficiently in acquiring UP Offshore and are planning to integrate a strong platform in Latin America into the global network of SEACOR Marine. This transaction demonstrates the benefit of operators and lenders working together, the stated.