The proceeds of the issue will be used to contribute to the funding of the Company's ongoing capital investment program, which includes the construction of three new offshore installation and construction support vessels.
The Notes will be convertible into ordinary shares of the Company and are expected to have a zero coupon, a yield to maturity in the range of 0.45% - 0.95% and a conversion premium of 35% - 40%. The Company will have an option to call the Notes after 5 years at their accreted principal amount. In addition, the holder of each Note shall have the right to require the Issuer to redeem such Note at its accreted principal amount at year 3, 5 and 7.
The Notes are expected to be settled on or around June 29, 2007. It is intended that an application will be made for the Notes to be admitted to listing and to trading on Oslo Bors.
Siem Industries Inc. has also announced the launch of its $225 million secured limited recourse exchangeable bonds due 2017 (the "Bonds"), exchangeable for ordinary shares of Subsea 7 subject to an option granted to Lehman Brothers International (Europe) to purchase up to an additional $25 million principal amount of Bonds. The Bonds are expected to settle on or around July 12, 2007.
This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to subscribe for any securities of Subsea 7 or Siem Industries.
Lehman Brothers International (Europe) is acting as Sole Manager for Subsea 7 in connection with the placement of the Notes and as Sole Manager for Siem Industries in connection with the placement of the Bonds.
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