Cal Dive gets limited waiver, amendment to first-lien credit agreement

By Susanna Moon

Chicago, Nov. 3 – Cal Dive International, Inc. said it entered into a limited waiver and amendment to its first-lien credit agreement that maintains the size of the revolving credit facility at $100 million through Dec. 1.

The amendment waives the company’s non-compliance with financial covenants and payment obligations under the credit agreement, as well as the cross defaults resulting from similar defaults under the company’s second lien credit facility through Dec. 1, according to a company press release.

As amended, the revolver size will step down to $90 million from $100 million on Dec. 2, the release noted.

The company said it is continuing to “work cooperatively with the lenders under its second-lien credit facility and its convertible notes, as well as its suppliers and vendors.”

The amendment provides more time to continue to pursue financing transactions, non-core asset sales and other strategic efforts that could provide additional liquidity and allow for the repayment, restructuring or refinancing of the company’s first-lien revolving credit facility and other funded debt, the company said.

There can be no assurance that an agreement will be reached by the waiver expiration, the company added.

If an agreement cannot be reached, the company said it will have to consider other “potentially less satisfactory measures to provide liquidity for its operations.”

The company also said it has been notified by the New York Stock Exchange that it began the process of delisting the company’s common stock (NYSE: CDVI) in view of its “abnormally low trading price.”

The NYSE made a public announcement on Oct. 29 last Wednesday, and trading was suspended immediately, the release noted.

The company said it was previously notified by the NYSE that it no longer satisfied the minimum share price standard for continued listing of the stock.

Cal Dive is a Houston-based marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry.

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