LogIn LogOut

Pacific Radiance Eyeing New Loan Source

January 24, 2020

A Pacific Radiance vessel - Image by Halley Pacheco de Oliveira / Shared under CC BY-SA 3.0 license
A Pacific Radiance vessel - Image by Halley Pacheco de Oliveira / Shared under CC BY-SA 3.0 license

Singapore-based offshore vessel owner Pacific Radiance has started loan talks with „a global investment fund“ after its discussions with an investor stalled in December 2019.

Pacific Radiance had in August 2019 said it was in talks with an unnamed financier over a $180 million loan which it would, together with the issuance of new equity, use to finance the acquisition of Allianz Marine and to pay off debt.

Allianz Marine is a UAE-based company offering integrated offshore logistics solutions and supply based operations to the offshore oil and gas and construction sectors. The company in May 2019 bought 25 offshore vessels from debt-laden Swissco.

Pacific Radiance said that the acquisition of Allianz Marine would create meaningful synergies between the two companies, "and enhance shareholder value."

It also said that the proposed deal was a strategic move to generate renewed investor interest in the shares of Pacific Radiance, and was also aimed at expanding its business and strengthening its foothold globally. 

Furthermore, Pacific Radiance said the proposed acquisition was "central" to its debt restructuring plan as the unnamed financier’s
willingness to lend the cash was based on the merger plans with Allianz.

Talks stall

However, in a statement issued earlier this week, Pacific Radiance said that discussions „with the Financier on the debt financing have stalled due to certain difficulties that have arisen in the course of the discussions in or around December 2019.“

The offshore vessel owner further said that it has approached other potential funders „from whom the Company had previously received indicative proposals in the course of 2019.”

“One of these potential funders (the “Second Financier”) has shown keen interest in extending debt financing to the Company. The Second Financier is a global asset management firm which has over US$100 billion of assets under management,” Pacific Radiance said, without disclosing the identity of the company.

"[Pacific Radiance] and [Allianz Marine] are at an advanced stage of their initial discussions with the second financier. The company continues these discussions with a view to entering into a term sheet for the proposed provision by the second financier of the debt financing to the company," Pacific Radiance said.



Current News

KrisEnergy Gets Kepinvest Support to Bring Cambodia Offshore Oil Project Online

KrisEnergy Gets Kepinvest Support to Bring Cambodia Offshore Oil Project Online

Oil Major Chevron Tells Employees to Delete WeChat from Phones

Oil Major Chevron Tells Employees to Delete WeChat from Phones

Recruitment Firms Fircroft, NES Global Talent Set to Merge

Recruitment Firms Fircroft, NES Global Talent Set to Merge

DOF Subsea Nets Two APAC Gigs

DOF Subsea Nets Two APAC Gigs

Final Approvals Granted for BP's Ironbark Drilling Project in Australia

Final Approvals Granted for BP's Ironbark Drilling Project in Australia

Keppel Offshore & Marine Clinches $146,5M in New Orders

Keppel Offshore & Marine Clinches $146,5M in New Orders

Seafox Pushes to Oust GMS Directors

Seafox Pushes to Oust GMS Directors

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com