Notice to Bondholders' Meetings in SIOFF 01 and SIOFF 02

The bondholders' meetings for the proposed amendments to the SIOFF01 and SIOFF02 Bond agreements were held today and the proposal was approved for the SIOFF02 NOK 700 million bond but did not achieve sufficient majority in the SIOFF01 NOK 600 million bond. For the results, kindly see notice re. Bondholders' Meetings published on the OSE today.

The amendment to the SIOFF 02 Bond reduces the Company´s debt with NOK 140 million as well as the interest burden on the Company going forward.

The bond amendments are required by the Company´s secured lenders as part of the discussions with respect to the new finance plan. The secured lenders do not allow unsecured debt to be repaid before secured debt. Without (i) the finance plan, (ii) the significant equity and financial contributions from the shareholders of SIOFF and (iii) the expected contribution from the sale of SOC, the bonds would not have particular value.

The Company views the proposal as balanced as the bondholders are offered a participation in the upside through the conversion mechanism for the bond. The haircut on the bond is 20%, which is less than what the bonds have been trading at in the second-hand market.

The restructuring of the SIOFF02 Bond leaves the bondholders in a much better position than what has been seen in other restructurings in the Norwegian supply vessel market.

The Board and Management of Siem Offshore continue to seek solutions to the many issues caused by the market downturn, and finding a solid path forward to protect the interests of all stakeholders and reduce risk. Good progress has been made and the Company is in a good position following the implementation of the finance plan.



Published 19-03-2018 in the Investor category