Hornbeck Offshore secures new credit facility

Hornbeck Offshore Services Inc. announced today that it has refinanced its existing $200 million revolving credit facility with a new credit facility providing up to $300 million of term loans. The six-year term of the new credit facility extends the maturity of the old credit facility from February 2020 to June 2023.

Covington, La.-based Hornbeck said the new credit facility enhances its financial flexibility by increasing liquidity from the currently applicable borrowing base of $75 million under the old credit facility, extends the maturity date that existed under the old facility by over three years, and eliminates all of the existing financial ratio maintenance covenants and the anti-cash hoarding provision of the old facility.

The new facility may be used for working capital and general corporate purposes, including the acquisition of distressed assets and/or the refinancing of existing debt, subject to, among other things, compliance with certain minimum liquidity (cash and credit availability) requirements.

As of 2 p.m. EDT, shares in Hornbeck were up over 30% on the news.

Hornbeck Offshore is a leading provider of technologically advanced, new generation offshore service vessels primarily in the Gulf of Mexico and Latin America.

About the author

David Krapf

David Krapf has been editor of WorkBoat, the nation’s leading trade magazine for the inland and coastal waterways industry, since 1999. He is responsible for overseeing the editorial direction of the publication. Krapf has been in the publishing industry since 1987, beginning as a reporter and editor with daily and weekly newspapers in the Houston area. He also was the editor of a transportation industry daily in New Orleans before joining WorkBoat as a contributing editor in 1992. He has been covering the transportation industry since 1989. He has a degree in business administration from the State University of New York at Oswego, and also studied journalism at the University of Houston.

© Diversified Communications. All rights reserved.