Farstad and Siem have signed a binding term sheet on Thursday to restructure Farstad, which will eventually be 50.1% controlled by Siem.
Farstad will issue a minimum of 702m ordinary new shares for a total subscription of minimum NOK1bn ($116.2m) at a price per share of approximately NOK1.4245.
Siem will underwrite NOK1bn of the cash issue and subscribe for and be allocated a minimum number of the new shares so that Siem owns 50.1% of Farstad shares, post restructuring.
Tyrholm & Farstad, currently the largest sharehold of Farstad, is cooperating with Siem over the restructuring, and will be offered a preferential right to subscribe 105.3m new shares for NOK150m. The remaining new shares will be offered to a mix of existing shareholders and other stakeholders to be finally agreed.
A mandatory offer for the existing shares of Farstad will be carried out by Siem in accordance with listing requirements of the Norwegian Securities Trading Act.
“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 amortisation deferrals so as to provide the company with a financial runway throughout 2021,” Farstad announced.
“The bondholders in Farstad's bond loans will be requested to convert all outstanding amounts, in total NOK1.4bn, under the bond loans into equity in Farstad,” it added.
Alesund-headquartered Farstad presently operates a fleet of 55 offshore vessels, comprising of 27 AHTS vessels, 22 PSVs and six subsea vessels. It has one subsea vessel under construction.
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