Hornbeck Offshore Announces Receipt Of Requisite Consents To Amend Indenture
Governing Its 8.000% Senior Notes Due 2017
COVINGTON, La., March 27, 2013
COVINGTON, La., March 27, 2013 /PRNewswire/ -- Hornbeck Offshore Services,
Inc. (NYSE: HOS) (the "Company") today announced that as of 5:00 p.m., New
York City time, on March 27, 2013 (the "Consent Expiration"), it had received
tenders and consents from holders of approximately $234,620,000, or
approximately 93.85%, of the aggregate principal amount of its 8.000% Senior
Notes due 2017 (CUSIP 440543 AH 9) (the "8.000% Notes"), in connection with
its previously announced tender offer and consent solicitation for the 8.000%
Notes, which commenced on March 14, 2013, and is described in the Offer to
Purchase and Consent Solicitation Statement dated March 14, 2013 (the "Offer
The Company intends to execute later today a supplemental indenture (the
"Supplemental Indenture") with respect to the indenture governing the 8.000%
Notes, which will eliminate most of the restrictive covenants and certain
default provisions contained in the indenture governing the 8.000% Notes. The
Supplemental Indenture will not become operative until a majority in aggregate
principal amount of the 8.000% Notes has been purchased by the Company
pursuant to the terms of the tender offer and the consent solicitation.
The Company's obligation to accept for purchase, and pay for, any 8.000% Notes
pursuant to the tender offer is subject to a number of conditions that are set
forth in the Offer to Purchase, including the closing of the Company's
previously announced offering of $450,000,000 in aggregate principal amount of
its 5.000% Senior Notes due 2021. Subject to the satisfaction or waiver of
these conditions, tomorrow all holders who validly tendered (and did not
validly withdraw) their 8.000% Notes prior to the Consent Expiration will
receive total consideration equal to $1,071.20 per $1,000 principal amount of
the 8.000% Notes, which includes a consent payment of $30.00 per $1,000
principal amount of the 8.000% Notes. Additionally, holders will receive
accrued and unpaid interest on the 8.000% Notes up to, but not including, the
payment date for such 8.000% Notes.
Holders who tender their 8.000% Notes after the Consent Expiration and prior
to the expiration of the tender offer, will be entitled to receive
consideration equal to $1,041.20 per $1,000 principal amount of the 8.000%
Notes, plus any accrued and unpaid interest on the 8.000% Notes up to, but not
including, the payment date for such 8.000% Notes accepted for purchase.
Holders of 8.000% Notes tendered after the Consent Expiration will not receive
a consent payment. The tender offer will expire at 11:59 p.m., New York City
time, on Wednesday, April 10, 2013, unless extended by the Company in its sole
discretion. As the withdrawal date of 5:00 p.m., New York City time, on March
27, 2013, has passed, previously tendered 8.000% Notes can no longer be
withdrawn, and holders who tender 8.000% Notes after the withdrawal date will
not have withdrawal rights.
The Company has retained Barclays Capital Inc., J.P. Morgan Securities LLC,
Wells Fargo Securities, LLC and DNB Markets, Inc. as dealer managers for the
tender offer and solicitation agents for the consent solicitation. Questions
regarding the terms of the tender offer may be directed to Barclays Capital
Inc., Liability Management Group, at (212) 528-7581 (collect) and (800)
438-3242 (US toll-free), J.P. Morgan Securities LLC at (212) 834-4802
(collect) and (866) 834-4666 (US toll-free), Wells Fargo Securities, LLC,
Liability Management Group, at (704) 410-4760 (collect) and (866) 309-6316 (US
toll-free) and DNB Markets, Inc. at (212) 681-3911 (collect).
This press release does not constitute an offer to purchase the 8.000% Notes
or a solicitation of consents to amend the related indenture. The tender offer
is made solely pursuant to the Offer to Purchase. The tender offer is not
being made to holders of 8.000% Notes in any jurisdiction in which the making
or acceptance thereof would not be in compliance with the securities, blue sky
or other laws of such jurisdiction.
The Company is a leading provider of technologically advanced, new generation
offshore supply vessels primarily in the U.S. Gulf of Mexico and Latin
America, and is a leading short-haul transporter of petroleum products through
its coastwise fleet of ocean-going tugs and tank barges, primarily in the
northeastern U.S. and the U.S. Gulf of Mexico. The Company currently owns a
fleet of 79 vessels primarily serving the energy industry and has 24
additional high-spec Upstream vessels contracted, approved or under
construction for delivery on various dates through 2015.
This news release contains forward-looking statements, including, in
particular, statements about the Company's plans and intentions with respect
to the purchase of the tendered 8.000% Notes, the execution of the
Supplemental Indenture and the construction of certain vessels. These have
been based on the Company's current assumptions, expectations and projections
about future events. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, the Company can
give no assurance that the expectations will prove to be correct.
Contacts: Todd Hornbeck, CEO
Jim Harp, CFO
Hornbeck Offshore Services
Ken Dennard, Managing Partner
Dennard-Lascar / 713-529-6600
SOURCE Hornbeck Offshore Services, Inc.
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