Hercules Offshore rolls out $500 million two-part notes offering

By Paul A. Harris

Portland, Ore., March 20 - Hercules Offshore, Inc. plans to price a $500 million two-part notes offering on March 30, according to a market source.

The deal features a $300 million tranche of five-year senior secured notes, which come with two years of call protection, and a $200 million tranche of seven-year senior unsecured notes, which come with three years of call protection.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and UBS Investment Bank are leading the Rule 144A and Regulation S offering.

Proceeds will be used to repay all of the debt outstanding under the company's existing secured term loan.

As a result of the repayment of the term loan, the company's outstanding 10½% senior secured notes will become unsecured, according to a company press release.

Remaining net proceeds from the pending sale of notes will be used for general corporate purposes, including to fund a portion of the acquisition of the drilling rig Ocean Columbia as well as the costs associated with its repair, upgrade and mobilization.

Hercules Offshore is a Houston-based provider of offshore drilling equipment and services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.