Bank approved Siem Offshore revamp includes AHTS spin-offWritten by Nick Blenkey
AUGUST 19, 2016 — Oslo-listed Siem Offshore Inc. reports that it has received approval from all of its financing banks for a financial platform to position the company for what it calls “the expected challenging market in the coming years.”
The approvals include a three year extension of the final bullet payments of all mortgage debt due before December 31, 2019, deferral of installments for the fleet of AHTS vessels for 2.5 years with a cash sweep mechanism, in the meantime as well as easing of certain covenant requirements to the company’s banks for the next three years.
Payment of interest and installment on all bank debt except for debt related to AHTS vessels will continue as normal.
The agreement is conditional on a restructuring of the company’s two public bonds.
A stand-alone AHTS vessel company, Siem AHTS Pool AS (SAP) is being set up.
Siem Offshore Inc., through subsidiary Siem Offshore Rederi AS, has sold all eight of its AHTS vessels to SAP and pool partner Singa Star PTE LTD has sold two vessels to the new company.
In the past, all the vessels have been operated in a pool agreement between Siem Offshore and Singa Star. After the transaction, Siem Offshore and Singa Star will hold shares in SAP in proportion to the net value of the vessels transferred to SAP, representing a share of 78.16% for Siem Offshore and 21.84% for Singa Star.
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