Siem Offshore acquired Farstad Shipping in another wave of consolidation of the Norwegian OSV business. The both companies signed a binding term sheet to restructure Farstad, which will be 50.1% controlled by Siem. According to the agreement, Farstad Shipping will issue a minimum of 702 million ordinary shares for a total subscription of minimum 1 billion NOK (117 million USD) at a price per share of approximately 1.4245 NOK. Siem will underwrite 1 billion NOK of the cash issue, and subscribe for and be allocated a minimum number of new shares so that Siem will receive the majority 50.1% of the shares in Farstad, post restructuring.
Tyrholm & Farstad, which is currently the largest shareholder of Farstad Shipping, is cooperating with Siem over the restructuring, and will be offered a preferential right to subscribe 105.3 million new shares for 150 million NOK. The remaining new shares will be offered to a mix of existing shareholders and other stakeholders to be finally agreed.
“A substantial majority of the senior secured lenders are supportive to the binding term sheet. The senior secured lenders will be requested to convert parts of the group’s secured debt into equity in Farstad, and provide amortization deferrals so as to provide the company with a financial runway throughout 2021”, said Farstad in official statement after approval of the binding term sheet. “The bondholders in Farstad’s bond loans will be requested to convert all outstanding amounts, in total 1.4 billion NOK, under the bond loans into equity in Farstad”, adds the statement.
Siem Offshore is an international offshore and subsea shipping company headquartered in Kristiansand, Norway. The company’s fleet includes 50 vessels, of which 15 are under construction. The fleet includes platform supply vessels (PSV), anchor handling tug and supply vessels (AHTS), multipurpose field and ROV support vessels (MRSV), offshore subsea construction vessels (OSCV), well intervention vessels (WIV), scientific core drilling vessels (SCDV) and crew transport vessels (CTV).