S&P rates Ocean Engineering notes BB-

S&P said it assigned BB- issue-level and 3 recovery ratings to Oceaneering International Inc.'s planned $200 million add-on to its $300 million of senior notes due in 2028. The ratings are the same as those on the outstanding notes.

“We view the transaction as deleveraging pro forma the recently announced cash tender offer of its $400 million, 4.65% senior notes due 2024, funded with a combination of the proposed note offering and $200 million of cash on hand. Assuming the tender offer is completed as expected, pro forma leverage would likely be viewed favorably against our upgrade threshold of 45% funds from operation (FFO) to debt,” S&P said in a press release.

The cash tender offer expires Tuesday and is not conditioned upon any minimum amount of notes tendered. “We expect Oceaneering will use the proceeds from the add-on for debt reduction, or for general corporate purposes if it fails to consummate the tender offer or the tendered amount is immaterial,” the agency said.

The outlook is positive.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.