Wells Fargo Equipment Finance, through its Energy and Marine and Capital Markets Groups, acting in the capacity of lead arranger, closed a $209 million financing facility for Signet Maritime Corporation (Signet), a global marine transportation company based in Houston, TX. The new facility refinances Signet’s existing bank debt and provides acquisition financing for the purchase of Harvey Gulf International Marine’s ocean towing vessel (OTV) fleet, which includes eight OTVs. Signet will also use proceeds of the financing facility to complete the construction and purchase of three new-build escort ASD reverse tractor tugs, and the purchase of three existing bareboat chartered vessels. Wells Fargo Equipment Finance, a subsidiary of Wells Fargo & Co., will serve as Administrative Agent and Collateral Agent on the transaction.
“The financing facility arranged by our lenders at Wells Fargo Equipment Finance acts as a catalyst for growth allowing Signet to expand its offshore operations effectively closing the loop to provide turn-key support to energy companies,” said J. Barry Snyder, president of Signet. “We are very proud of our double-digit increases in revenue, net income and EBITDA over the recent years, and by combining the strength of the very fine Harvey tugs, we are poised for increased productivity for the next decade.”
“We are very pleased to provide this comprehensive financing and acquisition package to Signet,” said Trent Mabe, managing director for Wells Fargo Equipment Finance. “Under Kyle Parks’ leadership, our Energy and Marine team did an outstanding job for Signet and our fellow equipment finance investors.”
Signet Maritime Corporation is a diverse international marine transportation and logistics company with concentration in the Americas, Africa and Middle East. Signet services the offshore marine and energy sector with rig movements, harbor tugboat operations, petroleum transport, vessel bunkering, and barge transport services. The Company’s full service vessel shipyard, Signet Shipbuilding & Repair (SS&R), provides new construction, repair, maintenance and refurbishment for steel and aluminum marine vessels. Headquartered in Houston, Texas, Signet maintains offices in Pascagoula, Mississippi, Port Fourchon, Louisiana, Morgan City, Louisiana, Ingleside, Texas, Brownsville, Texas, Dubai UAE, and Brazil SA.