Siem Offshore seeks debt relief from banks, in talks to sell cable lay business

Norwegian shipping company Siem Offshore is seeking help from banks to ensure its survival through the downturn. The shipowner is also looking to sell its cable lay business. 

In preparation for an extended downturn in the offshore supply market, Siem Offshore Inc. has issued a request to its banks for installment relief and certain other changes to its bank loan facilities to ensure that the company is able to service its debt obligations through the downturn, the company informed in a statement on Monday.

Secondly, Siem Offshore added, the company will issue notices for bondholder meetings in the two unsecured bond issues SIOFF01 and SIOFF02 for the bondholders to consider a proposal where the bonds will be exchanged at 80% of par value to a convertible bond with five and a half years maturity, 2 % cash interest and a NOK3 conversion price.

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

The outcome of these negotiations is not yet known and there is no certainty that a transaction will take place, the company concluded.

Siem Offshore Contractors is a provider of submarine cable installation, repair and maintenance serving the global offshore renewable energy and oil and gas sectors as well as utility markets since 2003. Related services such as dive and ROV support, marine survey, UXO investigation and remedial cable protection services are also provided.

In its 3Q 2017 report released in late October, Siem Offshore posted operating revenues of $101.3 million for the period compared to $166.2 million in the prior-year third quarter. The shipping company posted a loss of $8.3 million for this year’s third quarter compared to a profit of $2.7 million in the same period of last year.

Offshore Energy Today Staff