North Star, a key player in Europe's offshore wind sector, has secured a substantial debt investment of up to £425m. This strategic move aims to accelerate the company's growth and solidify its position as a leader in the industry. The investment will fuel North Star's ambition to expand its fleet with 40 hybrid Service Operation Vessels (SOVs) by 2040.
The financial package, totaling £225m in committed funds, includes term facilities from existing lender IFM Investors, along with capex and working capital resources from prominent banks such as ABN AMRO, AIB, NAB, Royal Bank of Scotland, and RBC. This financing structure not only provides immediate support but also offers flexibility with an accordion capacity allowing for an additional £200m in funding as needed.
RBC Capital Markets played a crucial role as the lead advisory in facilitating this transaction, underscoring the confidence of institutional and bank investors in North Star's business model and its transition journey towards environmental, social, and governance (ESG) excellence.
Fraser Dobbie, Chief Financial Officer of North Star, emphasized the significance of this investment, stating, “This £425m strategic investment highlights the attraction of our robust business model and ESG transition journey as we push to become the leading player in Europe's SOV sector.”
He further highlighted the benefits for potential clients, noting that the committed debt package provides certainty in delivering vessels as outlined in tender bids, effectively mitigating financial risks and enhancing competitiveness.
With bases in strategic locations including Aberdeen, Lowestoft, Newcastle, and Hamburg, North Star currently operates 41 multi-purpose ships in the North Sea. Additionally, the company has already deployed three out of four newbuild SOVs at the Dogger Bank Wind Farm, with the final asset set for early delivery next year.
North Star's commitment to innovation is evident in its fleet, which incorporates VARD designs tailored to meet clients' offshore logistics support and operational needs. These high-performance hybrid-electric ships integrate green technologies to ensure safe personnel and cargo transfer to offshore infrastructure.
See also: North Star and Vard Sign Contracts for New Offshore Wind Support Vessels with Option for Two More
The company's workforce, comprising 1,400 onshore personnel and seafaring crew, is dedicated to driving progress in the offshore wind sector. North Star's innovative solutions, including decision support systems and hybrid daughter crafts, position it at the forefront of advancements in the industry.
