OEG Energy seals $140m in fresh funds to support renewables growth plans

Aberdeen-based offshore contractor OEG Energy has raised $140m of new committed financing to pursue its expansion into the renewables sector.

OEG has been expanding its renewables unit and is supporting some of the largest offshore companies in the world to deliver major offshore energy projects.

The proceeds of the financing provide flexibility to refinance outstanding bonds and enhanced liquidity for OEG to continue the acquisitive growth of its renewables business as it supports the UK, and other core markets.

Total commitments of $140m comprise a $36m term loan and a $104m revolving credit. The revolving credit is provided by NatWest, Citi, and Santander and the term loan has been secured from the same trio and Goldman Sachs.

The latest financing follows the announcement made earlier this year by OEG of its partnership with funds managed by Oaktree Capital Management to accelerate the company’s ambitious growth plans.

Commenting on the new deal, CEO John Heiton said: “This financing provides OEG with further firepower, optionality and flexibility to better pursue its growth objectives. The quality of the banks that have participated in the syndicate reflects OEG’s leading position in the market and the trust that stakeholders have in our business model, growth prospects and ability to play a meaningful role within the global energy transition.”