Hornbeck Offshore settles tenders for $252.21 million of 6 1/8% notes

By Susanna Moon

Chicago, April 2 - Hornbeck Offshore Services, Inc. said it settled total tenders for $252,205,000 of its $300 million 6 1/8% senior notes due 2014.

The tender offer expired at 11:59 p.m. ET on March 29. The offer began March 2.

The company will redeem the remaining $47,795,000 principal amount of the notes on April 30, according to a press release.

The redemption will be funded with proceeds from the company's recent issuance of $375 million of 5 7/8% senior notes due 2020.

Hornbeck said on March 15 that it received tenders and consents from the holders of 84.05% of its notes by the consent deadline at 5 p.m. ET on March 15.

The consents received were enough to amend the notes to eliminate most of the restrictive covenants and default provisions contained in the indenture.

The company said it planned to execute a supplemental indenture and that the amendments would become operative once a majority of the notes had been purchased by Hornbeck.

As previously noted, the total purchase price was $1,012.71 per $1,000 principal amount of notes. This included a $30.00 consent fee for each note tendered by the consent deadline.

The company also paid accrued interest up to but excluding the settlement date.

When the offer began, Hornbeck said it expected to settle notes tendered by the consent date on March 16 and those tendered after the consent date on March 30.

Holders could not tender their notes without delivering consents or vice versa.

The offer was conditioned on the completion of the company's $375 million offering of 5 7/8% senior notes due 2020.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4802), Barclays Capital Inc. (800 438-3242 or 212 528-7581) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) are the dealer managers and solicitation agents.

Global Bondholder Services Corp. (866 294-2200 or 212 430-3774) is the depositary and information agent.

Hornbeck is a Covington, La.-based provider of offshore supply vessels.

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