Gulf Marine Services (LSE:GMS), a provider of self-propelled, self-elevating support vessels to the offshore energy industry, has converted its January 2026 bridge loan into a long-term term loan.
The bridge facility, the AED-equivalent of $37.4 million, was drawn in January to fund a vessel acquisition and has now been restructured into a five-year term loan.
The company says the move does not increase its overall indebtedness, but shifts short-term acquisition financing onto a structure matching the vessel's long-term ownership.
The conversion sits within GMS's existing syndicated lending arrangement, with HSBC, First Abu Dhabi Bank and Commercial Bank of Dubai retaining the same margin, covenant package and security terms as before. No new lenders have joined and pricing is unchanged.
Separately, GMS secured an additional AED-equivalent $7.5 million working capital facility from Commercial Bank of Dubai to support expansion into new geographies, with up to 40% drawable in cash at an interest rate of 2.25% plus EIBOR (the Emirates Interbank Offered Rate).
Chief Financial Officer Alex Aclimandos said the conversion "reflects the continued support of our banking syndicate and provides the Company with cost-effective financing appropriate to the useful life of the Vessel." He added that despite the cash-drawable portion of the working capital increase, "we expect its use to be to the issuance of bonds and other bank guarantees."
News Intelligence what this means for the company
GMS converted a $37.4 million bridge loan drawn in January 2026 for a vessel acquisition into a five-year term loan, keeping the same lenders, margins and covenants—a refinancing that extends the debt maturity to match the asset's useful life without increasing total indebtedness. The company also secured a $7.5 million working capital facility from Commercial Bank of Dubai, though management expects most of it to fund guarantees and bonds rather than cash drawdown, signalling disciplined capital deployment for geographic expansion.
The refinancing removes near-term refinancing risk on the January acquisition and aligns debt tenor with vessel economics, a structural improvement. The modest working capital addition ($7.5 million against a $666 million backlog reported in June 2026) supports expansion but does not materially alter the company's liquidity or leverage profile.
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