S&P rates GulfMark notes BB-

Standard & Poor's said it affirmed its BB- corporate credit and senior unsecured ratings on GulfMark Offshore Inc. and assigned its BB- rating to GulfMark's proposed $155 million senior unsecured offering due 2014.

The outlook remains negative.

The ratings affirmation follows a review of GulfMark in light of the proposed refinancing of its existing $130 million notes due 2008 with the issuance of $155 million senior notes due 2014. Proceeds from the proposed notes exceeding any redemption premiums and financing fees, roughly $18 million, will be used to repay outstanding borrowings on GulfMark's credit facility and for general corporate purposes.

S&P said the ratings on GulfMark reflect its position in the volatile and cyclical offshore support vessel industry, high debt leverage, and an aggressive growth strategy.

Somewhat offsetting this risk are a $100 million credit facility, contract coverage for roughly 65% of vessel days for 2004 and 35% of vessel days for 2005, accounting for roughly $40 million and $30 million of EBITDA respectively, as well as near-term improvement in GulfMark's North Sea market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.