Hercules Offshore amends revolver, increasing size, lowering rate, extending tenor

By Sara Rosenberg

New York, June 14 - Hercules Offshore Inc. amended its revolving credit facility, increasing the size to $75 million from $25 million, reducing the interest rate by 100 basis points per annum and extending the maturity by two years to June 29, 2010, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, the amendment provides for the removal of the dollar limits on investments, capital expenditures and transfers of assets to and other investments in Hercules' subsidiaries that are not guarantors under the facility.

The interest rate on the amended revolver is set at Libor plus 225 basis points.

The amendment was completed on June 12.

Comerica Bank is the lead bank on the deal.

"The revolver increase improves our financial flexibility and reflects the confidence that our core group of lenders are placing in our management team and strategy," said Steve Manz, chief financial officer, in a company news release.

"Furthermore, by removing the dollar limits on investments, capital expenditures and transfers of assets to non-guarantors, we have also improved our operational flexibility," Manz added.

Hercules is a Houston-based owner of nine jackup drilling rigs and 51 liftboats.

© 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.