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Hornbeck Offshore Completes Sale of its Downstream Segment for $230 million

 Hornbeck Offshore Completes Sale of its Downstream Segment for $230 million

PR Newswire

COVINGTON, La., Aug. 29, 2013

COVINGTON, La., Aug. 29, 2013 /PRNewswire/ -- Hornbeck Offshore Services, Inc.
(NYSE: HOS) ("Hornbeck" or "the "Company") announced today that it has closed
the previously announced sale of substantially all of the assets and business
of its Downstream segment's tug and tank barge ("TTB") fleet to Genesis
Marine, LLC ("Genesis"), an affiliate of Genesis Energy L.P. (NYSE:GEL), for
cash consideration of $230 million. The Company received approximately $224
million in proceeds, net of expenses and estimated cash taxes, from this
transaction, which will be used for general corporate purposes that may
include retirement of debt or funding for the acquisition, construction or
retrofit of vessels. The Downstream vessels sold to Genesis comprised
Hornbeck's active fleet of nine ocean-going tugs and nine double-hulled tank
barges. In connection with the closing, Hornbeck and Genesis entered into
transition service agreements in order to ensure a smooth transition of
operations and services for both employees and customers.

J.P. Morgan Securities LLC acted as exclusive financial advisor to Hornbeck
Offshore with respect to this transaction.

Hornbeck Offshore is a leading provider of technologically advanced, new
generation offshore supply vessels primarily in the U.S. Gulf of Mexico and
Latin America. The Company currently owns a fleet of 58 vessels primarily
serving the energy industry and has 23 additional high-spec Upstream vessels
under construction for delivery on various dates through 2016.

Forward-Looking Statements

This news release contains forward-looking statements, including, in
particular, statements about the Company's plans and intentions with regard to
the use of proceeds from the sale of the Downstream fleet and the performance
of transition service agreements. 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
           985-727-6802
           Ken Dennard, Managing Partner
           Dennard-Lascar / 713-529-6600

SOURCE Hornbeck Offshore Services, Inc.

Website: http://www.hornbeckoffshore.com
 
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