Siem Offshore is in talks with a potential buyer of Siem Offshore Contractors (SOC), as the parent company is considering strategic alternatives for its cable lay business amid preparation for an extended downturn in the offshore supply market.
“The outcome of these negotiations is not yet known and there is no certainty that a transaction will take place,” Siem Offshore stated.
To ensure that it will be able to service its debt obligations through the downturn, Siem Offshore has issued a request to its banks for instalment relief and certain other changes to its bank loan facilities. In addition, the company will issue notices for bondholder meetings in two unsecured bond issues 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 NOK 3 conversion price.
Siem Offshore Contractors reported a decrease in operating revenues from USD 84.9 million in Q3 2016 to USD 10.3 million in Q3 2017. In the first nine months of 2017, SOC generated gross revenues of USD 87 million, down from USD 129.4 million posted in the same period of 2016. The total backlog on 30 September 2017 was at USD 160 million.
SOC is currently working on inter-array cable connections at the Beatrice, Hornsea One and Trianel Windpark Borkum II offshore wind farms.
Offshore WIND Staff