UAE-based lift boat operator Gulf Marine Services announces that it has reached an agreement with First Abu Dhabi Bank, Commercial Bank of Dubai and HSBC Bank to refinance its current bank debt. The three banks, two of which are current lenders, will have an equal participation to the term loan and to the working capital facility.
The facility will consist of a term loan of an amount equivalent to USD 250 million in United Arab Emirates Dirhams (AED) as a well as a working capital facility of an amount equivalent to USD 50 million, also in United Arab Emirates Dirhams. The loan will have a tenor of five years from the facility agreement date. 80% of the term loan will be amortized quarterly over 5 years with a 20% balloon. Exposure to the AED will be hedged in full.
GMS Executive Chairman Mansour Al Alami said: “I am delighted to finally announce this deal for a USD 300 million facility today. This is yet another testimony of the progress achieved by GMS in the past couple of years. It signals a new dawn for us and the start of a new journey. It acknowledges our recent years track record and will enable us to achieve our long-term objectives on growth and on shareholders rewards, without jeopardizing our commitment to deleveraging.
“The deal allows us to plan for improving shareholders value by investment in growth and for shareholders rewards by reducing restrictions on dividend payment and share buyback.GMS will look to add opportunistically and on favourable terms assets that could have an immediate impact on building the backlog and the profitability.”
GMS Board has also approved a dividend policy dedicating 20%-30% of annual adjusted net profit towards distributions to shareholders in the forms of dividends and potentially share buyback provided all bank covenants are met and other plans permit.
GMS confirms it is maintaining its adjusted EBITDA guidance for the 12 months ending December 2024 in the range of USD 92 million to USD 100 million, as first announced on 28 February 2024.
Source: shipmanagementinternational