Hercules Offshore tweaks amendment, moves commitment deadline to Tuesday

By Paul A. Harris

St. Louis, July 17 - Hercules Offshore Inc. tweaked the amendment to its credit facility currently being negotiated with its bank lenders, an informed source said Friday.

UBS is leading the deal.

The deadline for commitments moves to Tuesday at 5 p.m. ET. The previous deadline was July 17.

The revisions to the amendment include allowing the Houston-based provider of energy production equipment and services to augment the collateral by including a few additional rigs.

The Libor floor remains unchanged at 2%. The amendment fees also remain unchanged at 50 bps.

The covenant holiday is being shortened by three quarters, to December 2009 from June 2010.

The leverage test restarts in December 2009, after the holiday, with an eight times requirement, which steps down to 7.5 times.

The accordion feature is eliminated.

Also eliminated is the company's ability to repurchase its convertible securities with cash, unless it is in compliance with the original 3.75 times leverage text covenant.

The company is pledging $420 million of unencumbered assets based on the July 2009 appraisal.

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