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Hornbeck Offshore Completes Conversion and Redemption of 1.625% Convertible Senior Notes due 2026



 Hornbeck Offshore Completes Conversion and Redemption of 1.625% Convertible
                            Senior Notes due 2026

PR Newswire

COVINGTON, La., Nov. 18, 2013

COVINGTON, La., Nov. 18, 2013 /PRNewswire/ -- Hornbeck Offshore Services, Inc.
(NYSE: HOS) ("Hornbeck" or the "Company") announced today that all of its
outstanding 1.625% Convertible Senior Notes due 2026 (the "Notes") have been
converted or redeemed. Holders of approximately $249.6 million in aggregate
principal amount of the Notes elected to convert their Notes prior to the
previously announced redemption date of November 15, 2013. The conversions of
these Notes were settled based on the applicable conversion rate of 20.6260
shares of the Company's common stock per $1,000 principal amount of Notes,
which equates to a conversion price of $48.48 per share, and on the
volume-weighted average price of the Company's common stock during the
Observation Period (as defined in the Indenture governing the Notes) of
October 8, 2013 through November 11, 2013.  The Company satisfied its
conversion obligations to these holders by paying cash equal to the aggregate
principal amount of the Notes converted and delivering shares of the Company's
common stock in settlement of all conversion obligations in excess of the
principal amount (except that the Company paid cash in lieu of issuing
fractional shares). In total, the Company delivered 728,411 shares of the
Company's common stock to the converting holders, which were provided to the
Company by the counterparties to the previously disclosed convertible note
hedge transactions entered into in 2006 concurrently with the pricing of the
Notes. This prevented the equity dilution that would otherwise have resulted
from the share delivery requirements of the conversion. The number of shares
of the Company's common stock outstanding after the conversion was the same as
immediately prior to the conversion.  The remaining $0.4 million in aggregate
principal amount of the Notes was redeemed at a redemption price of 100% of
the principal amount thereof. The cash payment obligations related to the
conversion and redemption were funded with cash on-hand.

Hornbeck Offshore Services, Inc. is a leading provider of technologically
advanced, new generation offshore supply vessels primarily in the U.S. Gulf of
Mexico and Latin America. Hornbeck Offshore currently owns a fleet of 61
vessels primarily serving the energy industry and has 20 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 construction and delivery of additional
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
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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