Norway-based Siem Offshore has ended talks with Subsea 7 over a possible sale Siem Offshore Contractors (SOC), and will continue to operate SOC, Siem reported today (29 November).
The company had entered into discussions with Subsea 7 because of the strategic fit between Subsea 7’s renewable business and SOC’s cable business. Siem reported on 20 November it was considering “strategic alternatives” for its cable lay business as it prepared for an extended downturn in the offshore supply market.
To prepare for the downturn, Siem also issued a request to its banks for installment relief and other changes to its bank loan facilities to ensure Siem could service its debt obligations. The company has issued notices for bondholder meetings for the two unsecured bond issues SIOFF01 and SIOFF02. In these meetings, bondholders will consider a proposal where bonds will be exchanged for 80% at par value to a convertible bond with five and a half years maturity, 2% cash interest and an NOK3 conversion price, Siem said in the 20 November statement.
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