Way Ahead In Corrosion Control

Deepwater repurchases stock

The minority shareholders of Houston, Texas-based Deepwater Corrosion Services, Inc., which is a leader in providing innovative corrosion control for the world’s offshore infrastructure, have completed a stock repurchase from Total Oil Technologies Sdn Bhd., restoring full ownership of the company to the founders. The stock repurchase was financed via a subordinated note transaction with BHC Interim Funding III, L.P. and SBA-guaranteed senior working capital line of credit and term debt facilities with Bank of Houston.

BHC is a dedicated fund located in New York established to provide short-term mezzanine and bridge capital to U.S. middle-market companies. Bank of Houston is a full-service community bank providing middle-market business loans and lines of credit.

James N. Britton, Deepwater’s Chief Executive Officer, says: “The proceeds from the debt facilities will be used to repurchase Deepwater’s capital stock owned by Total Oil Technologies Sdn Bhd and repay the notes to Total Oil Technologies Sdn Bhd., a wholly-owned subsidiary of Wah Seong Corporation Berhad, listed on the Main Board of Bursa Malaysia Securities Berhad.  This repurchase is the culmination of a lot of hard work by our management team and our bankers. Having our management team in full control will allow Deepwater to fully realize our growth ambitions and continue our aggressive international expansion program. With sustained growth over the last 5 years, we are very confident in the offshore energy markets that we specialize in."

Deepwater consists of Deepwater Corrosion Services Inc. and subsidiaries Deepwater EU Ltd. (United Kingdom) and Deepwater do Brazil Engenharia Ldta. (Brazil).

WoodRock Securities, L.P., a Houston-based investment banking firm, represented Deepwater as financial advisor.