On March 19, 2018, the bondholders approved certain changes to the SIOFF02 bond arrangement. The approved amendments to this bond provides for the exchange of the existing Bond with a convertible bond at 80% of nominal value and interest rate of 2.75%.The convertible bond has a conversion price of NOK 3.00 per share. This will reduce debt by approximately NOK 140 million as well as reduced interests and extension of maturity to 2023.
On April 10, 2018 the sale of Siem Offshore Contractors (SOC) and the sale of the cable lay vessel Siem Aimery and the walk to work vessel Siem Moxie to a company in the Subsea group was completed for an initial consideration of EUR 140 million subject to usual adjustment for net cash and working capital. In addition, the Company estimates that the additional contingent consideration for future periods (2019-2024) will amount to between EUR 25-40 million. This business has historically been reported as a separate reportable segment in note 4 (Submarine Power Cable Installation). The initial proceeds from the sale will be used to pay down the bank loan on Siem Aimery and Siem Moxie which amounts to around EUR 60 million.
As part of this sale, the USD 60 million credit facility with Siem Industries has been amended and reduced to a USD 12 million revolving credit facility.