Rem Offshore holders approve transfer of floaters to Solstad Offshore

By Susanna Moon

Chicago, May 15 - Rem Offshore ASA said that bondholders voted in favor of a change of borrower for its NOK 250 million of floating-rate senior unsecured bonds due March 23, 2011.

The company had proposed the floaters be taken over by Solstad Offshore ASA when the two companies complete their demerger.

The proposal received the needed two-thirds votes from holders at a meeting on Friday.

Solstad Offshore will now unconditionally guarantee the loan.

Other approved changes include the following:

• Holders may put 20% of their holdings on Sept. 23 at par plus accrued interest;

• Solstad Group must maintain a book equity of more than NOK 1.5 billion;

• Holders will receive a one-time fee of 1% of par; and

• Holders give prior consent to any merger in which Solstad Offshore integrates Holdco.

Rem previously said that 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.

The company had proposed that holders who consent to the change receive a fee equal to 0.25% of par and offered 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.

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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