Siem Offshore in Standstill Agreement with European Lenders

Thursday, May 28, 2020

Norwegian offshore vessel owner Siem Offshore entered into a standstill agreement with its secured lenders in Europe and Norway for the period from May 29, 2020, until April 30, 2021. 

The terms of the agreement include 100% deferral of principal and interest until the end of the standstill period. The agreement also includes a waiver of financial covenants, including loan-to-value provisions. 

Siem Offshore has similar discussions ongoing with the secured lenders in Brazil and Canada, and the standstill agreement is conditional on agreement with these banks. 

The standstill agreement is further conditional upon reaching an agreement with the bondholders of the NOK350 million senior unsecured bond (SIOFF01) due October 30, 2020, and the NOK760 million senior unsecured convertible bond (SIOFF02) due  November 4, 2023, to defer payments and suspend acceleration rights until the expiry of the deferral period on April 30, 2021.

"The standstill agreement will improve the Company’s cash flow and liquidity and secure sufficient cash to operate the fleet in a challenging offshore market with possible down time caused by covid-19, during the next 11 months," Siem Offshore said.

"The intention is for the company and its lenders to use the standstill period to agree a long-term plan to take the Company through the prolonged downturn and preserve the earnings capability to allow for repayment of debt when the market recovers," the company added.


Categories: Finance Energy Vessels Activity Norway Europe

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