Initial Seawork meeting creates foundation for beneficial partnership
July 9, 2024By Seawork Press FP
Siemens Financial Services
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A €25m finance facility from Siemens Financial Services (SFS) is enabling offshore maritime services provider Mainprize Offshore to grow its CTV fleet.
Mainprize currently operates nine CTVs across the North Sea, off the coast of Scotland, Germany and Denmark. The business was founded in 1979 by the Mainprize family, who have a fishing heritage dating back 350 years. It is now a market-leading European CTV designer, owner and operator playing an essential role in maintaining the operations of multiple blue-chip customers including Orsted, Siemens Gamesa and RWE.
Proprietary vessel designs means that Mainprize’s CTVs have a unique ability to operate in challenging sea and weather conditions all year round. To enable the acquisition of new CTVs, Mainprize sought a financing partner who would understand how it operates as well as its growth ambitions. Bob Mainprize, owner of Mainprize Offshore, explains, “We initially met SFS at Seawork in 2023 and so, when we needed finance support to acquire new CTVs, they were already in our minds as a prospective lender.
“Our business needs specialist financing partners who understand our products, our markets, asset values and applications, and the dynamics of a business like ours. Technical understanding and market appetite are crucial. That’s why we wanted to work with SFS. Their specialised approach is a strategic advantage to support our business growth.
“Though the greener CTV market is relatively nascent, SFS needed no explanation on the value of CTVs in supporting offshore wind. This, combined with their deep market and technical knowledge, allowed us to have far more candid and constructive conversations as we negotiated appropriate financing structures. Their understanding of new vessel build times and inherent FX requirements, for instance, is reflected in our financing agreement, which offers flexibility on the fund drawdowns as well as an in-house FX facility.
“SFS also indicated potential for a future financing arrangement to further expand the fleet and support business growth. The backing of a significant partner such as SFS with the possibility of a longer partnership helped to set them apart from generalist financiers.”
Andrew Southwood, Head of Marine Finance at SFS, “We were delighted to embark on this new partnership with Mainprize – starting with our largest deal to date. Our mutual passion about supporting offshore energy made our conversations fruitful, culminating in an excellent result for Mainprize. As well as focusing on the immediate needs of the business, we also took the time to get to know Bob and the team, to build a bigger picture of their long-term objectives and provide input where possible. This created the foundation for a beneficial partnership which goes beyond a one-off transaction.”
The number of offshore wind farms is growing, particularly further offshore where they benefit from more consistent and higher wind speeds. In parallel, it is fundamental that operators of all-weather, advanced vessels, like Mainprize, can expand their fleets to support the rollout and operation of wind turbines. Slow expansion will hold up progress in wind farming, in fact, some industry commentators already expect a bottleneck in CTV supply in the next few years, with the European fleet expected to grow from 393 vessels in 2023 to 732 by 2032. The introduction of new vessels ensures that Mainprize continues to maintain its position as one of the leading market operators, strengthening the business’ ability to win long-term contracts with customers. Notably, the new vessels are also hybrid-ready, offering flexibility in future fuel types.
