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December 24, 2019

Milbank Advises Lead Arrangers on €980M Landmark Transaction for a First-Time Issuer

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Milbank LLP has advised the lead arrangers in the €980 million financing for Boluda Towage, S.L. consisting of a €890 million term loan B for the acquisition of Kotug Smit Towage and refinancing of a significant portion of the Boluda Towage’s existing debt and a new €90 million revolving credit facility for working capital purposes.

This landmark transaction for a first-time issuer in the TLB market was secured by a package of security and guarantees in Spain, France, Germany, the Netherlands, Belgium and Malta.

Boluda Towage, the towing division of Boluda Corporación Marítima, is one of the world’s leaders in maritime services, with a worldwide presence in 15 countries in Europe, the west coast of Africa, America [the United States] and the Indian Ocean. Kotug Smit Towage is a Dutch-headquartered business that operates in countries in the North Sea, such as the United Kingdom, including the River Thames, as well as the Netherlands, Belgium and Germany. The recent acquisition by Boluda will further consolidate the company’s position as the leading European operator in the towage sector and results in the Boluda Group acquiring 67 additional tugs to its fleet.

Milbank has worked on a number of large financings involving Spanish companies this year, including CEPSA and Grifols.

The Milbank team was led by European Leveraged Finance/Capital Markets partner Suhrud Mehta with associates Tom Neilson and Sarah Findlay and Corporate associate James Mackay.