Oil Field Services & Well-Revival Technology Company
A strategic debt-equity investment supporting the expansion of an innovative oilfield services company across the Middle East, combining growth capital, intellectual property enhancement, and long-term IPO positioning.
Sector
Oil & Gas Services
Geography
UAE
Expansion into Saudi Arabia, Libya & Oman
Expansion into Saudi Arabia, Libya & Oman
Facility Size
Up to USD 100 Million
Structure
Blended Debt + Equity
The Situation
The client specialized in oilfield services, supplying drilling equipment and proprietary technology designed to revive inactive and underperforming oil wells. Initially seeking approximately USD 45 million to acquire additional machinery and execute well-revival projects, management also sought a long-term strategic investment partner capable of supporting its regional growth ambitions.
During detailed discussions it became clear that the company intended to expand through acquisitions across Saudi Arabia, Libya, and Oman before pursuing an international public listing.
Due Diligence & Structuring
Extensive commercial and technical due diligence identified a significantly larger opportunity than originally presented. The financing package was increased to USD 100 million and structured through phased pyramid disbursements that aligned capital deployment with operational expansion, reducing repayment pressure during the company's growth phase.
Technical specialists were engaged to independently evaluate the company's equipment and proprietary technology, while expired patents were re-filed to strengthen intellectual property protection. The investment strategy also incorporated IPO planning, positioning the fund as a long-term anchor investor throughout the company's expansion journey.
Challenges & Solutions
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Risk Protection
Comprehensive insurance and reinsurance arrangements were established to safeguard the investment throughout the regional expansion program. -
Expansion Governance
A lender-appointed board representative provided financial oversight and strategic guidance during the company's international growth. -
Collateral Enhancement
Third-party collateral arrangements were implemented to supplement project-based security and strengthen overall credit protection.
Key Transaction Terms
Facility
Up to USD 100 million structured through a blended debt-equity financing solution linked to enterprise value.
Tenor
Seven-year facility including a one-year moratorium.
Interest
6.5%–8.5% per annum on a reducing balance with monthly payments.
Equity Exit
Buyback option after Year 3 with an 18% IRR hurdle and IPO or investor exit by Year 5 if required.
Security
Share pledge, free cash-flow assignment, corporate and personal guarantees supported by third-party collateral.
Funding Schedule
Four staged disbursements beginning with three USD 15 million tranches followed by a final USD 55 million acquisition tranche.
Investment Outcome
What began as an equipment financing request evolved into a regional expansion platform spanning multiple Middle Eastern markets. Through disciplined structuring, technical due diligence, intellectual property enhancement, and IPO preparation, the transaction aligned long-term investor returns with the company's strategic expansion while preserving financial flexibility throughout its growth cycle.
