Hull Replacement and Accompanying Debt Financing

Siem Offshore Inc ("the Company") has accepted a proposal from the Kleven yard to utilise an existing hull for the construction of one of the eight anchor handling tug supply vessels ("AHTS vessel") to be built for the Company.

Siem Offshore Inc ("the Company") has accepted a proposal from the Kleven yard to utilise an existing hull for the construction of one of the eight anchor handling tug supply vessels ("AHTS vessel") to be built for the Company.

The existing hull was initially built for an AHTS vessel to be delivered by the Karmsund yard (Norway), but is currently owned by the Norwegian Guarantee Institute for Export Credits (“GIEK”) and SpareBank1 SR-Bank (Norway) due to the bankruptcy at the Karmsund yard.

The existing hull is of a VS 490 design and is to a large extent similar to the VS 491 design ordered by the Company. The relevant vessel will be equipped with an ODIM ARF A-frame, FiFi I and Standby Class. The company has agreed to pay an additional NOK 25 million for the enhanced capabilities. All other terms are as per the initial contract. The scheduled delivery of the relevant vessel is May 2010 as compared to the initially scheduled delivery in March 2010.

Siem Offshore has accepted an offer for a 70% loan and guarantee facility for the relevant vessel. The loan will be provided by the Norwegian export credit institution for Export Financing (“Eksportfinans”) and the guarantees will be provided by SpareBank1 SR-Bank and GIEK.

 For further information
 
Dagfinn Lie
Chief Financial Officer
+47 90 19 90 51
 

Published 30-06-2009 in the Investor category
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