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.