Hercules Offshore tenders, solicits consents for 10½% notes due 2017

By Susanna Moon

Chicago, Sept. 17 - Hercules Offshore, Inc. said it began a cash tender offer and consent solicitation for its outstanding $300 million of 10½% senior secured notes due 2017.

The total purchase price will be $1,058.75 per $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 30, the consent date. The total payment includes a cash consent payment of $5.00 per $1,000 principal amount.

Holders who tender their notes after the consent date will receive the tender payment of $1,053.75 per $1,000 of notes.

The tender offer will end at 11:59 p.m. ET on Oct. 15.

The company also will pay accrued interest up to but excluding the payment date.

Tendered notes may be withdrawn by the consent expiration.

Holders who tender their notes will be required to consent to proposed amendments to the note indenture, according to a company press release.

The offer is conditioned on the company receiving consents for at least a majority of the notes and the company securing proceeds from the capital markets of at least $300 million by the initial settlement date of Oct. 1.

Hercules Offshore planned to price a $300 million offering of eight-year senior notes on Sept. 17, as reported by Prospect News.

The final settlement will occur on Oct. 16.

Deutsche Bank Securities Inc. (855 287-1922 or collect 212 250-7527) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 488-8075) is the documentation agent.

The company is a Houston-based provider of offshore drilling equipment and services.

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