Funder running towards the offshore market, not away from it

08.03.2016
The ongoing oil price volatility has taken its toll on all aspects of companies who operate in support of offshore work and that includes funding options. However, Bridge & York Capital Partners (“BYCP”) takes a much more granular approach in dealing with clients and transactions, and advises its appetite for the right client with the right opportunity is even stronger than previously.

Warren Daley (Head of Sales) stated:
“We have worked with clients in the offshore support market now for over five years and have seen the evolution of businesses as the oil price has dropped, exploration ceased and other work come to the fore. One major change (which we called before it started) was a move to opex rental deals in the space as opposed to capex. This has created an opportunity for clients to build their own “rental pools” as opposed to selling kit, and we have been happy to fund these. Another key opportunity is with clients who have equipment or propositions which save money in the space. We work with a couple of clients with gamechanging products, again using a rental pool concept, and they are going from strength to strength.

We understand the critical risk areas in the space through experience, and our due diligence is thorough, but this actually assists us in getting to a deal, rather than the opposite. By applying this philosophy, we have been the largest funder of ROVs worldwide for the last few years, apply funding terms to match useful lives of kit (so have gone up to 10 years where appropriate), are not stuck on limiting loan to values (we are more bothered with the economic drivers of revenues created by the kit), and can use a range of facilities including operating lease. We can fund across most regions of the world.

Our average deal size currently is c £10m but our sweet spot range is £500k to £25m, and we aim to fund rolling programmes with clients and so are not single transactional. We are open minded to types of kit as long as it serves a business critical function, so we have done everything from workboats, offshore containers, diving pressure chambers, to bespoke cable laying equipment. ”

BYCP is a specialist funder and fund arranger with offices in Aberdeen, Belfast, Dublin and Head Office in London. BYCP acts exclusively for a number of specialist lease funds as well as its own fund “IF&L”. Core supported markets include renewable energy, food and manufacturing processes, offshore support, oil & gas. During 2016 BYCP is on track to write > £250m across various market sectors and geographies.

Contact:

Warren Daley
Partner
Bridge & York Capital Partners
01224 224735
07703 193750

Email: wad@bridgeandyork.co.uk
Website: www.bridgeandyorkcapitalpartners.co.uk


Location: UK









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