Siem Offshore Inc. (the 'Company') as issuer has today summoned a bondholders' meeting in the Company's bond issues SIOFF 01 with ISIN NO 001 0670441 and SIOFF 02 with ISIN NO 001 0708670, as part of the restructuring of the Company and its subsidiaries ('SIOFF' or the 'Group').

The bondholder meetings in SIOFF 01 and SIOFF 02 will be held on 5 February at 12 hours (Oslo time) at the premises of Nordic Trustee AS, Kronprinsesse Marthas plass 1, 0160 Oslo, 7th floor.

The Group has since Q1 2020 worked with its secured lenders and bondholders, towards a consensual financial restructuring.

SIOFF is pleased to announce that it is in the final stages of negotiations with the European banks and expects to sign a formal term sheet for the restructuring of the Group's credit agreements with these lenders shortly. In parallel, the Company has been working with key bondholders in SIOFF 01 and SIOFF 02 to secure agreement for a restructuring proposal in respect of these two bond issues, which proposal is presented in the summons published today. The Company has obtained confirmation from key bondholders representing a substantial share of all bonds that they support the restructuring process of the Group and that they will vote in favour of the proposal. Further, the European banks have confirmed their support of the bond restructuring proposal.

The main terms of the restructuring agreed with the European banks, key bondholders and shareholders include: Total equitization of approximately USD 268 mill of debt, including: Bond debt; USD 129 mill

Secured bank debt: USD 132 mill

Hedging liabilities: USD 7 mill

The SIOFF 01 bonds will receive a payment of USD 4 million, and the residual claim will be converted to equity in the Company.

The SIOFF 02 bond liabilities will be converted to equity in the Company in their entirety.

Remaining secured debt following conversion to be guaranteed by SIOFF and to be serviced in full, in part or by cash sweep only depending on categorization based on contract situation, current market conditions and forecast. No debt amount will be in excess of current market values.

Extension of maturity for secured facilities with original maturity date before 31 December 2024.

Revised financial covenants.

Revised general undertakings.

The equitized debt will be converted to shares at a price of NOK 0.10 per share.

The final amount of converted debt will depend on the marked to market values of the Group's hedging agreements, potential divestments of vessels and potential conversion of debt owed to the Brazilian banks.

Upon completion of the restructuring, Siem Industries Inc. is expected to hold approximately 30% of the Company's shares. The expected ownership is a result of conversion of Siem Industries position of SIOFF 02 bonds and the existing equity position.

The components of the restructuring are subject to credit and internal approvals with the stakeholders, as well as satisfactory documentation and conditions precedent. The agreements with the European banks and the bondholders are further mutually conditional, and subject to a satisfactory refinancing solution with the Brazilian banks.

The Group remains in discussions with the Brazilian banks with the aim of securing their participation in the restructuring, but has so far not been able to reach agreement for a long-term solution. While the negotiations with the Brazilian banks continue, the Group is exploring alternative options with a view to consummate the restructuring without the consensual participation of BNDES and Banco do Brazil.

Contact:

Tel: +47 901 99 051

(C) 2021 Electronic News Publishing, source ENP Newswire