Rem Offshore seeks bondholder OK to transfer floaters due 2011 to Solstad Offshore

By Angela McDaniels

Tacoma, Wash., April 30 - Rem Offshore ASA has proposed that its NOK 250 million floating-rate senior unsecured bonds due March 23, 2011 be taken over by Solstad Offshore ASA when the two companies complete their demerger, according to a company news release.

Rem said Solstad is a significantly larger and more diversified company and that the principal amount of the bonds is large relative to the post-separation size of Rem and its fleet.

Bondholders who consent to the change will receive a fee equal to 0.25% of par.

The company is also offering a partial put for 20% of the bonds at 90% of par at the time of the split, which is expected to be early August.

Bondholders will vote on the proposal at a meeting that is expected to take place May 14.

Rem manages a fleet of vessels used in offshore petroleum production and fishing and is based in Fosnavag, Norwary.

Solstad's fleet is engaged in the offshore petroleum industry. The company is based in Skudeneshavn, Norway.

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