Hornbeck Offshore's tender for 10 5/8% notes expires, calls remainder

New York, Dec. 9 - Hornbeck Offshore Services Inc. said its tender for its $175 million principal amount of 10 5/8% senior notes due 2008 expired and it called the remaining $15.546 million of the securities.

The redemption will be on Jan. 14 at a price calculated according to the terms of the notes. Hornbeck also intends to defease the notes by year-end.

No further notes were tendered after the consent deadline of 5 p.m. ET on Nov. 16, by which time holders had tendered $159.454 million or 91% of the notes, as disclosed on Nov. 17.

At the previous announcement on Nov. 16 Hornbeck Offshore said it set the pricing.

The company said it would pay $1,102.08 per $1,000 principal amount for notes tendered by the consent deadline, including a $30 consent payment. The price assumes a settlement date of Nov. 24 and is based on a yield of 3.172%.

Hornbeck Offshore announced the offer on Nov. 4, saying pricing for the notes would be based on a fixed spread. For each $1,000 principal amount of the notes, Hornbeck Offshore will pay the present value on the applicable settlement date the redemption price of $1,053.13 on the first call date of Aug. 1, 2005 plus interest from the last payment date to the first call date, discounted using a spread of 75 basis points over the yield to maturity of the 1.50% U.S. Treasury security due July 31, 2005, minus accrued interest on the notes from the last interest payment date to the applicable settlement date. Pricing was fixed at 5 p.m. ET on Nov. 16.

The total includes a $30 per $1,000 principal amount consent payment that will only be paid to holders who tender by 5 p.m. ET on Nov. 17. Holders who tender after that date but before the expiration of 5 p.m. ET on Dec. 3 will not receive the consent payment.

The New Orleans offshore supply vessel operator will also pay accrued interest up to the settlement date.

It said the consent solicitation is to amend the note indenture to eliminate certain restrictive covenants and default provisions.

Holders who tender will be deemed to have delivered consents.

The information agent and tender agent is Global Bondholder Services (866 470-3800 or collect at 212 430-3774). Goldman, Sachs & Co. is dealer manager and solicitation agent (Contact Credit Liability Management Group at 800 828-3182 or collect at 212 357-5680).

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