Hornbeck Offshore Services talks $75 million add-on to 6 1/8% notes due 2014 at 99 area

By Paul A. Harris

St. Louis, Sept. 28 - Hornbeck Offshore Services Inc. talked a $75 million add-on to its 6 1/8% senior notes due Dec. 1, 2014 at the 99.00 area on Wednesday, according to a market source.

Pricing is expected on Thursday afternoon.

Goldman Sachs & Co., Bear Stearns & Co. and Jefferies & Co. are joint bookrunners for the Rule 144A with registration rights offering.

Proceeds, along with proceeds from an initial public offering of stock, will be used to partially fund the construction of new vessels and the retrofit or conversion of existing vessels, also for possible future acquisitions and additional new vessel construction programs, and for general corporate purposes.

The bond contains a make-whole call at Treasuries plus 50 basis points until Dec. 1, 2009, then becomes callable at 103.063. There is also an equity clawback until Dec. 1, 2007 for 35% at 106.125.

Standard & Poor's assigns the notes a rating of BB-.

The original $225 million priced at par on Nov. 18, 2004.

Hornbeck Offshore Services is a Covington, La., provider of offshore supply vessels and a transporter of petroleum products.

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