Hornbeck Offshore concludes tender for 8% notes, calls remaining

By Toni Weeks

San Luis Obispo, Calif., April 11 - Hornbeck Offshore Services, Inc. said it received tenders for $234,656,000 of its $250 million principal amount of 8% senior notes due 2017 before the offer expired at 11:59 p.m. ET on April 10, according to a press release.

The company also announced it will redeem the remaining $15,344,000 of the notes on May 13 at a redemption price that will be calculated in accordance with the indenture governing the notes. The redemption will be funded with proceeds of Hornbeck's recent issue of $450 million of 5% senior notes due 2021.

As previously reported, the company had also solicited consents to execute a supplemental indenture to eliminate most of the restrictive covenants and some default provisions in the indenture governing the notes. The company said on March 27 that it had received tenders and consents from the holders of $234.62 million, or 93.85%, of the notes as of the consent deadline, 5 p.m. ET on March 27, which was enough to execute the supplemental indenture.

The total purchase price was $1,071.20, which includes a $30.00 consent payment for each $1,000 principal amount of notes tendered by the consent deadline.

The company also paid accrued interest up to but excluding the settlement date, which was March 28 for notes tendered by the consent deadline.

Holders were not allowed to tender their notes without delivering consents or deliver consents without tendering their notes.

The offer was subject to the closing of the company's $450 million offering of 5% senior notes due 2021, which has been satisfied.

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

Hornbeck is a Covington, La.-based provider of offshore supply vessels to the oil and gas industry. It began the tender offer and consent solicitation on March 14.

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