JM Financial-backed Samson Maritime Limited, an offshore logistics support services firm to the Oil & Gas sector, will raise $12.5 million from International Finance Corporation (IFC).
The proposed fund raising is to buy Anchor Handling Tug Supply Vessel (AHTS). The AHTS will be Dynamic Positioning 2 (DP2) compliant, have a Dead Weight Tonnage (GT) of approximately 1850 and is expected to be deployed by September/October 2013.
According to IFC's project disclosure, the proposed purchase of AHTS by the company is expected to cost around $17 million, which is expected to be financed by IFC loan of $12.75 million and internal accruals of $4.25 million. The AHTS, financed through IFC’s loan, will be deployed under a contract along the coast of India.
Samson is essentially a family owned enterprise with two founding sponsors viz. Suresh Samant and Mohan Samant who, together with their families, own 81% of the Company. JM Financial and IFC hold 11.7% and 7.3% respectively.
At present, Samson Group has a fleet of 21 vessels which comprise Anchor Tugs, Supply Vessels, Harbor tugs, Ocean going Tugs, utility boats / vessels and Barges which are deployed in: Offshore Logistics Support and Supply Services; Single Point Mooring (SPM) – Operations & Maintenance; Lighterage and Harbor Operations; and Diving & Salvage Services.
Samson is a mid-size Company and while it has attracted new lenders post IFC's first round of financing, it has not been able to contract longer tenor dollar denominated debt.
The company is also planning a second round of private equity.
IFC infusion will help the company support this plan by signalling its continued confidence in the company's management and operations at a time when the Indian shipping industry and many of Samson's competitors are experiencing financial turbulence.
Similar to the categorisation of the earlier investment, this is also a Category B project because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognised performance standards, guidelines or design criteria.
