Hornbeck Offshore Issues $450,000,000 Of 5.000% Senior Notes Due 2021
COVINGTON, La., March 28, 2013
COVINGTON, La., March 28, 2013 /PRNewswire/ -- Hornbeck Offshore Services,
Inc. (NYSE: HOS) (the "Company") announced that it closed today the sale of
$450,000,000 in aggregate principal amount of its 5.000% Senior Notes due 2021
("Senior Notes") in a private placement. The Senior Notes have not been
registered under the Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold in the United States absent registration
or an available exemption from such registration requirements.
The net proceeds to the Company from this offering were approximately $442.4
million, after deducting initial purchaser discounts and fees and expenses of
the offering.The Company used approximately $252.7 million of such proceeds
to repurchase approximately 93.85% of the outstanding $250 million in
aggregate principal amount of its 8.000% Senior Notes due 2017 (CUSIP 440543
AH 9) (the "8.000% Notes") pursuant to its previously announced tender offer
and consent solicitation for the 8.000% Notes.The Company accepted all 8.000%
Notes that were tendered by 5:00 p.m., New York City time, on March 27, 2013,
for purchase and payment. The $252.7 million comprised the total consideration
paid for such 8.000% Notes tendered, including related accrued interest and
consent fees. The remaining proceeds will be used to repurchase or redeem the
approximately 6.15% of the 8.000% Notes that remain outstanding and for
general corporate purposes, which may include retirement of other debt or
funding for the acquisition, construction or retrofit of vessels.
The Company's repurchase today of the tendered 8.000% Notes made operative the
supplemental indenture executed by the Company, certain of its subsidiaries
and the indenture trustee for the 8.000% Notes, which sets forth certain
amendments to eliminate most of the restrictive covenants and certain default
provisions contained in the indenture governing the 8.000% Notes.
This press release is being issued pursuant to Rule 135C under the Securities
Act, and is neither an offer to sell nor a solicitation of an offer to buy any
of these securities and shall not constitute an offer, solicitation or sale in
any jurisdiction in which such offer, solicitation or sale is unlawful.
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 through 2015.
This news release contains forward-looking statements, including, in
particular, statements about the Company's plans and intentions with respect
to the use of proceeds of the Senior Notes 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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