Hornbeck Offshore tenders, solicits consents for $250 million 8% notes

By Susanna Moon

Chicago, March 14 - Hornbeck Offshore Services, Inc. said it began a cash tender offer and consent solicitation for its $250 million principal amount of 8% senior notes due 2017.

The total purchase price is $1,071.20, including a $30 consent payment, for each $1,000 principal amount of notes tendered by the consent deadline.

Holders who tender after the consent date will receive $1,041.20 per $1,000 principal amount.

The company also will pay accrued interest up to but excluding the payment date.

The tender offer will end at 11:59 p.m. ET on April 10.

The company may settle early tendered notes as early as March 28 and those tendered after the early deadline on April 11, according to a press release.

Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

If the company obtains consents for a majority of the notes, it will execute a supplemental indenture to amend the notes to eliminate most of the restrictive covenants and certain default provisions.

Tendered notes may be withdrawn by 5 p.m. ET on March 27.

The offer is conditioned on the company obtaining consents to amend the notes, executing a supplemental indenture and completing of a capital markets debt financing with enough proceeds to fund the offer.

Global Bondholder Services (866 294-2200 or collect 212 430-3774) is the depositary and information agent. Barclays (liability management group, 800 438-3242 or collect 212 528-7581), J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-4802), Wells Fargo Securities, LLC (liability management group, 866 309-6316 or collect 704 410-4760) and DNB Markets, Inc. (collect 212 681-3911) are the dealer managers.

Hornbeck is a Covington, La.-based provider of offshore supply vessels to the oil and gas industry.

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