Stonebriar Commercial Finance closed a seven-year $465 million term loan credit facility with Nautical Solutions, a provider of offshore supply vessels services primarily to offshore exploration and production companies. Proceeds of the loan were used to refinance Nautical Solutions’ prior indebtedness.

The loan is secured by first preferred ship mortgages on a fleet of U.S. flagged, Jones Act compliant, ABS classed, modern and high-spec offshore supply vessels currently operating under term contracts in the U.S. Gulf of Mexico, Guyana and Brazil.

“Nautical Solutions benefits from generational and tested management, decades-long relationships with oil majors and an irreplicable fleet of diverse vessels and supporting global shoreside resources,” Nicholas Sandler, president of Stonebriar, said. “We are pleased to deepen our exposure to maritime assets alongside such established and trusted partners.”

“Nautical Solutions is well positioned to realize the benefits of a healthy and structurally sustainable offshore cycle underpinned by growing investments in offshore exploration and production, tightening vessel supply and a limited new orderbook,” Kyle Parks, executive vice president of Stonebriar, said. “Market conditions are right, and this management team is well equipped to execute its plan.”

“We have known Dave Fate and his leadership team for years and had great comfort that Stonebriar would deliver the capital solution that best positions Nautical Solutions for success in this robust offshore market,” Dino Chouest, an executive vice president of Nautical Solutions, said. “Harrison Smith and the balance of the Stonebriar team worked diligently to close this facility as agreed and on time.”

Nautical Solutions was represented by Tusk Capital Advisors and Phelps Dunbar, and Stonebriar was represented by Baker Donelson.