Gulf Marine Maintenance and Offshore Service Company ("GMMOS"), parent company of offshore support fleet (OSV) provider, Stanford Marine, and Dubai based shipbuilding and repair company, Grandweld, issued a $60m convertible loan to fund further expansion of its offshore marine business Stanford Marine. The loan has a tenor of 4 years with an initial coupon of 6% p.a. fully convertible to equity at a valuation commensurate with the Group's future growth prospects.
GMMOS Group has undertaken a series of expansion efforts since its acquisition by Funds advised by Abraaj Capital in 2007, having added 16 new vessels to its fleet. In 2009, the group also established a presence in South East Asia with an office in Singapore. Based in Dubai, GMMOS Group is supported by an Abraaj managed Fund and Waha Capital.
Elias Nassif, Group CEO, stated that "The proceeds of the US$60 million facility will fund growth of its offshore supply vessel division (Stanford Marine), to take advantage of the expected recovery in the offshore market". Ahmed Badreldin, Executive Director at Abraaj Capital Limited, added that "the growth of the offshore business is in line with the Company's strategy to expand the Group's offshore fleet and focus its activities on the core marine sector".