Overview
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Company
A UK-based shipping operator that provides service operations vessels (SOVs) and emergency response and rescue vessels performing critical access and safety-related services to offshore energy infrastructure.
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Deal origination
IFM Investors originated and structured this opportunity via an existing relationship with the borrower and its financial advisor, leveraging prior engagement to facilitate a follow-on investment.
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Loan overview
In 2024, an account managed by IFM Investors completed a follow-on investment that supported the company’s strategic pivot from oil and gas services to offshore wind operations.
Why this investment?
We saw this investment as potentially offering attractive relative value in a sector undergoing significant transformation:
Exposure to essential infrastructure
We believe the company plays a vital role in ensuring the operational continuity and safety of offshore energy infrastructure, via its fleet of service operations vessels (SOVs), and emergency response and rescue vessels.
1 Sourced from due diligence materials shared privately by the borrower.
Diversification of revenue
Prior to our investment, over 90% of the company’s revenue had been generated by services related to offshore oil and gas operations1. But the company has sought to pivot in a changing world, where European energy security and decarbonization are high on the agenda. This diversification of revenue streams should help increase the company’s stability.
Embedded KPIs: How does the investment incentivize sustainable outcomes?
The loan was structured around key performance indicators (KPIs), meaning interest payments over the loan’s tenor can be stepped up or down depending on whether the company:
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Increases its revenue from offshore wind
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Adds vessels dedicated to offshore wind servicing
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Maintains injury rates below industry benchmarks
The outcome
For IFM, this loan helps us engage with the company and support its strategic objectives, which in turn helps us manage risks and seek to generate reliable long-term returns for our investors.