Siem Industries plans €200 million bonds exchangeable into Subsea 7 to yield 1.5%-2.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, May 26 – Siem Industries Inc. plans to price €200 million of five-year bonds exchangeable for shares of Subsea 7 SA that were being talked to yield 1.5% to 2.25% and with an initial conversion premium of 27.5% to 32.5% over Subsea’s common shares on the Oslo Stock Exchange during marketing, according to a release.

The Regulation S issue has a €75 million increase option and was being sold via bookrunners ABG Sundal Collier ASA and BNP Paribas.

Concurrently with the pricing of the new notes, Siem Industries is offering to repurchase its existing 1% bonds, exchangeable for common shares of Subsea 7 due 2019 for 99% to 99.5% of the principal plus accrued interest.

Proceeds of the new bonds are being used to repurchase the 2019 bonds and to reimburse the remaining 2019 bonds at maturity and for general corporate purposes.

The bonds are non-callable except for a clean up call.

Final terms were expected to be set later Thursday with settlement seen on June 2. The new bond will mature on June 2, 2021. Application is being made to list the securities.

Based in the Cayman Islands, Siem Industries is a diversified industrial holding company with interests in oil and gas and renewable energy and shipping, mining and finance.

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