COVINGTON, La., March 6, 2019 /PRNewswire/ -- Hornbeck Offshore
Services, Inc. (NYSE:HOS) (the "Company") announced today that, on
March 1, 2019, it borrowed an
additional $50.0 million of
first-lien term loans under its First Lien Term Loan Agreement,
comprised of $30.1 million in cash of
new financing and $19.9 million of
exchanged loans. Approximately $21.0
million in face value of its 1.5% Convertible Senior Notes
due 2019 (the "2019 Notes") were exchanged in a privately
negotiated debt-for-debt exchange for such $19.9 million of additional first-lien term
loans. In addition, on March 5, 2019,
the Company effected a privately negotiated exchange of
$11.0 million in face value of its
5.875% Senior Notes due 2020 (the "2020 Notes") for an additional
$9,350,000 of second-lien term loans
under its Second Lien Term Loan Agreement.
In a series of recent private transactions, the Company
eliminated approximately $73.9
million in principal amount of 2019 Notes for an aggregate
purchase price of approximately $67.2
million, consisting of approximately $47.3 million of cash repurchases and a
debt-for-debt exchange of approximately $19.9 million of incremental first-lien term
loans, plus payment of accrued and unpaid interest thereon and fees
and expenses.
After giving effect to the first-lien term loan expansion and
the note repurchases and exchanges, the aggregate balance
outstanding under the Company's (w) first-lien term loans due 2023
have increased from $300.0 million to
$350.0 million; (x) second-lien term
loans due 2025 have increased from $111.9
million to $121.2 million; (y)
2019 Notes have decreased from $99.6
million to $25.8 million; and
(z) 2020 Notes have decreased from $235.1
million to $224.3 million.
When combined with the Company's February
7, 2019 private debt-for-debt exchange of $131.6
million of its 2020 senior notes for $111.9
million of second-lien term loans, the Company has now
refinanced approximately 73% and 39% of the face value of its 2019
convertible notes and 2020 senior notes that were outstanding on
December 31, 2018, respectively. The
cumulative effect of these actions resulted in extinguishing or
refinancing approximately $216.5 million in near-term debt, while
using only $19.5 million of cash,
excluding legal and other advisory fees.
For further details, please see the Current Report on Form 8-K
dated March 1, 2019 filed with the
SEC today, March 6, 2019.
Oppenheimer & Co. Inc. acted as Exclusive Financial Advisor
on the privately negotiated exchange and follow-on
transactions.
Hornbeck Offshore Services, Inc. is a leading provider of
technologically advanced, new generation offshore service vessels
primarily in the Gulf of Mexico
and Latin America.
Forward-Looking Statements
This news release contains forward-looking statements,
including, in particular, statements about certain of the Company's
outstanding debt obligations. These statements are 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
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SOURCE Hornbeck Offshore Services, Inc.