North Star has secured £275m ($370m) in new debt financing to back the next phase of expansion in its offshore wind fleet across the UK and Europe, according to Splash247.
The financing package adds to existing commitments, widens the lender group and improves overall financing terms for the UK-based offshore vessel operator, Splash247 reported. The funding follows North Star’s earlier acquisition this year of four service operation vessels (SOVs) from Edda Wind, and is designed to fully cover the company’s current shipbuilding programme while leaving room for further acquisitions and newbuilds.
Financing structure and lenders
New participants in the lending syndicate include Rabobank, KfW IPEX-Bank and LBBW, while existing lenders RBS, AIB, the Scottish National Investment Bank and RBC have increased their commitments, according to Splash247. RBC Capital Markets acted as lead adviser on the deal.
The table below summarises the key financing and fleet figures reported by Splash247:
| Financing and fleet detail | Figure | Source |
|---|---|---|
| New debt financing | £275m ($370m) | Splash247 |
| New syndicate members | Rabobank, KfW IPEX-Bank, LBBW | Splash247 |
| Existing lenders increasing commitments | RBS, AIB, Scottish National Investment Bank, RBC | Splash247 |
| Lead adviser | RBC Capital Markets | Splash247 |
| Fleet size after Edda Wind acquisition | 14 vessels | Splash247 |
| Target fleet size by 2040 | 40 SOVs | Splash247 |
Fleet growth and acquisition context
North Star’s fleet stood at 14 vessels after the Edda Wind acquisition, Splash247 reported. The company has stated that it aims to expand to 40 SOVs by 2040. The new financing is intended to cover the current shipbuilding programme and preserve capacity for additional vessel purchases and orders.
“This deal reflects the scale we’ve built and the path we are on. As the business has grown, so too has our ability to attract new lenders and secure better pricing and terms, a dynamic that keeps reinforcing itself.” — Fraser Dobbie, CFO of North Star, as reported by Splash247
Chief Financial Officer Fraser Dobbie said the deal reflects North Star’s growth and its ability to attract new lenders and secure better pricing and terms, according to Splash247. Chief Executive Officer Gitte Gard Talmo said the company is now looking to build on its operating and financing capabilities to consider what other offshore maritime markets could demonstrate the right balance of risk and return to its investors.
What this means for logistics and maritime operators
For freight forwarders, vessel operators and port authorities, the expansion of North Star’s offshore wind fleet affects the specialised segment of project logistics and crew transfer operations serving UK and European wind farms. The company operates SOVs — vessels that support the construction, maintenance and operation of offshore wind turbines — and the funding will feed both newbuild activity and future acquisitions, according to Splash247.
The presence of a wider lender group, including European banks Rabobank, KfW IPEX-Bank and LBBW, signals growing financial interest in offshore wind vessel infrastructure, based on the syndicate details reported by Splash247. Existing backers RBS, AIB, Scottish National Investment Bank and RBC expanded their commitments in the round.
Watch list
- Completion and delivery of vessels under North Star’s current shipbuilding programme, which the new financing is designed to fully cover.
- Potential further acquisitions and newbuilds, since the package leaves room for additional fleet growth.
- North Star’s stated target of 40 SOVs by 2040, up from 14 vessels today.
- Chief Executive Officer Gitte Gard Talmo’s comment that North Star is considering other offshore maritime markets beyond the UK and Europe, according to Splash247.
Sources:
