Proserv secures US$215 million in deal

Proserv secures US$215 million in deal

Posted: January 9, 2013

Rapidly-evolving energy production technology services company Proserv has consolidated its position for sustainable growth and future expansion following the successful completion of a US$215 million refinancing agreement.

The term loan and revolving credit facility, which is being supported by HSBC, Lloyds, Barclays, Santander, Wells Fargo and RBS after Simmons and Co Aberdeen advised Proserv on arranging the corporate finance resource, will be used to pay down existing debt, pursue new strategic acquisitions and support the company’s continued growth strategy.

Proserv has experienced exceptional growth within the past two years with turnover rising from £112 million (US$181 million) in 2011 to around £196 million (US$316 million) within 12 months.

The refinancing agreement reinforces Proserv’s market-leading position and fast-growing status as a leading provider of exploration & production, drilling, and infrastructure technical solutions and services to the global energy industry.

It also comes after the company made two high-profile acquisitions in 2012 which not only bolstered its capabilities but saw its global talent pool increase by more than 600 people to over 1,600.

David Lamont, Proserv’s chief executive officer, said: “In light of the difficult economic climate and challenging conditions faced by many businesses globally, to be able to secure refinancing at this level is a huge testament to the confidence that the financial community have in our company and in its future prosperity.

“Proserv is entering an exciting new era and the new refinancing agreement will underpin our strong business plan for growth which includes investing in complementary world-class technologies and building on our existing range of value-added products and services, often through new strategic acquisitions.”

Steve Hewes, Head of Leveraged Finance Scotland at HSBC Bank Plc, said: “Proserv represents a prime example of the positive trends we are seeing in the Aberdeen market, with local jobs being created to help facilitate ongoing and sustained international growth. With a proven trading track record, market leading suite of products and services and high quality management team, Proserv is excellently placed to further benefit from the positive fundamentals supporting the global offshore oil & gas industry.

“HSBC is delighted to play a leading role in this refinancing which not only underlines our positive relationship with Proserv, but assists with the company’s continued growth aspirations, both organically and via acquisition.”

Jimmy Williamson, Director at Lloyds Bank Commercial Banking Acquisition Finance, said: “The Proserv team have done an excellent job of integrating five specialist businesses into a leading provider for the exploration & production, drilling and subsea market sectors, and is forecast for exceptionally strong growth. This refinancing, which has allowed us to cement our relationship with a leading sponsor and strong management team, demonstrates the company’s robust track record and strong growth trajectory.”

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