Market Overview

Hornbeck Offshore Issues $375M of 5.875% Senior Notes Due 2020


Hornbeck Offshore Services, Inc. (NYSE: HOS) announced that it closed today the sale of $375 million aggregate principal amount of 5.875% Senior Notes due 2020 in a private placement. The Senior Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or available exemption from such registration requirements.

The net proceeds to the Company from this offering were approximately $367.4 million, after deducting initial purchaser discounts and fees and expenses of the offering. The Company used $259.8 million of such proceeds to repurchase approximately 84.04% of the outstanding $300 million aggregate principal amount of its 6.125% Senior Notes due 2014 pursuant to its previously announced tender offer and consent solicitation for the 2004 Notes.

The Company accepted all 2004 Notes that were tendered by 5:00 p.m., New York City time, on March 15, 2012, for purchase and payment. The $259.8 million comprised the total consideration paid for such 2004 Notes tendered, including related accrued interest and consent fees. The remaining proceeds will be used to repurchase or redeem the approximately 15.96% of the 2004 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.

Posted-In: News Offerings


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