Siem says negotiating sale of cable lay business

Norwegian offshore and subsea shipping company Siem Offshore Inc is holding talks with an unnamed party interested in buying cable lay business Siem Offshore Contractors GmbH.

Germany-based marine contractor Siem Offshore Contractors is active in the installation of submarine cables, as well as in the provision of repair and maintenance serves to the global offshore renewable energy and oil and gas sectors, with a focus on offshore wind.

Siem Offshore unveiled the negotiations in a statement on its website, without giving more details about the potential transaction. It said it is getting ready for an extended downturn in the offshore supply market and for this reason has also requested that its lenders accept an instalment relief and certain other changes to its bank loan facilities. This would ensure that Siem Offshore is able to service its debt obligations through the downturn, it noted.

Moreover, the company plans to ask bondholders to consider a proposal where 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 NOK 3.00 (USD 0.363/EUR 0.308) conversion price.

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