Oceaneering announces $200 million private shelf with Prudential

By Lisa Kerner

Charlotte, N.C., Sept. 9 - Oceaneering International, Inc. entered into a $200 million private shelf facility on Wednesday with Prudential Investment Management, Inc., according to an 8-K filed with the Securities and Exchange Commission.

The facility provides Oceaneering with fixed-rate borrowings of up to 13 years, with an average life of no more than 10 years.

Oceaneering may issue senior promissory notes for Prudential and its affiliates to purchase at their discretion within the next three years, the filing said.

The promissory notes represent borrowings under the shelf facility in the total principal amount of up to $200 million.

Oceaneering has not issued any shelf notes under the shelf facility as of Wednesday.

Maturity of each shelf note will be chosen by Oceaneering at the time the interest rate is fixed.

According to the filing, the shelf facility contains financial covenants that require maintenance of a maximum debt to capitalization ratio and a minimum interest coverage ratio. There are also covenants that restrict Oceaneering's ability to incur debt, create liens, pay dividends and merge with other companies, according to the filing.

Oceaneering is a Houston-based provider of engineered products and services to the offshore oil and gas industry.

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