New Issue: Hercules Offshore prices $400 million senior notes at par to yield 8¾%

By Paul A. Harris

Portland, Ore., June 28 - Hercules Offshore, Inc. priced a $400 million issue of eight-year senior notes (B3/B) at par to yield 8¾% on Friday, according to market sources.

The yield printed at the tight end of the 8¾% to 9% yield talk.

Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Pareto Securities were the joint bookrunners.

Proceeds, together with cash on hand, including $104 million expected from the sales of its inland barge rigs, domestic liftboats and related assets, will be used to fund the acquisitions of shares of Discovery Offshore SA and for the final payment of $333.9 million due for Discovery Triumph and Discovery Resilience.

The issuer is a Houston-based operator of rigs and marine support vessels.

Issuer:	Hercules Offshore, Inc.
Amount:	$400 million
Maturity:	July 15, 2021
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Pareto Securities
Co-managers:	ABN Amro, Capital One Southcoast, Comerica Securities, Natixis, Tudor Pickering Holt & Co.
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	661 bps
First call:	July 15, 2017 at 104.375
Trade date:	June 28
Settlement date:	July 8
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S
Price talk:	8¾% to 9%
Marketing:	Roadshow

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