Hornbeck cancels exchange and tender offers, consent solicitation

By Marisa Wong

Los Angeles, March 23 – Hornbeck Offshore Services, Inc. said it has terminated its previously announced private offers to exchange any and all of its outstanding 5 7/8% senior notes due 2020 (Cusip: 440543AL0) and 5% senior notes due 2021 (Cusip: 440543AQ9) for a combination of new 10% senior notes due 2023 and 5˝% senior notes due 2025, private offer to purchase for cash up to $66.7 million of the existing notes and solicitation of consents to proposed amendments of and releases related to the indentures governing the existing notes.

The offers were set to expire at 11:59 p.m. ET on March 23.

According to a Monday press release, Hornbeck does not expect the minimum participation condition under the terms of the offers to be satisfied by the expiration time.

As previously reported, the offers were conditioned on holders of at least 99% in principal amount of each of the 2020 notes and the 2021 notes tendering their notes for new notes or cash at or prior to the expiration time.

Hornbeck also said in Monday’s press release that the onset of circumstances surrounding Covid-19 and the precipitous decline in oil prices has had a negative effect on the offshore service vessel industry generally as well as on the company. For these reasons, among others, the company has decided to terminate the offers prior to the expiration time.

As a result of the termination, no existing notes will be accepted for exchange or repurchase, and the indentures governing the notes will not be amended. The company will instruct Global Bondholder Services Corp., the tender, information and exchange agent, to return any notes that were tendered for exchange to their respective holders.

The company’s board of directors also decided to cancel a special meeting of stockholders scheduled for Monday. The special meeting was originally called to consider and vote on matters related to the exchange offers.

The offers had required that 66 2/3% of the company’s stockholders approve the issuance of the new notes as well as the company’s common stock, issuable under the terms of the new notes, the securities underlying the new notes and certain warrants issuable in connection with the exchange offers as required by the New York Stock Exchange.

On Monday the company said it is, in consultation with its advisors, continuing to explore a range of options with its stakeholders with the common objective of strengthening its financial position. However, there can be no assurance that these discussions will be successful, the company cautioned.

Hornbeck is a Covington, La.-based provider of offshore supply vessels primarily in the Gulf of Mexico and Latin America.

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