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    Siem Offshore mulling sale of contracting unit

    Company News // November 21, 2017

    Siem Offshore in Norway says it is considering a range of alternatives to help it through the downturn in the offshore oil and gas market, including selling Siem Offshore Contractors.

    Siem Offshore said “In preparation for an extended downturn in the offshore supply market Siem Offshore has issued a request to its banks for instalment relief and certain other changes to its bank loan facilities to ensure that it is able to service its debt obligations through the downturn.

    “The company will issue notices for bondholder meetings in the two unsecured bond issues SIOFF01 and SIOFF02 for the bondholders to consider a proposal whereby the bonds will be exchanged at 80% of par value to a convertible bond with five-and-a-half year maturity, 2% cash interest and a Nkr3 (US$0.36) conversion price.”

    At the same time, the company is considering ‘strategic alternatives’ for its cable lay business, Siem Offshore Contractors, and said it is in negotiations with a potential buyer for the business.

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