Hornbeck Offshore Services gets interim access to $50 million of loan

By Caroline Salls

Pittsburgh, May 21 – Hornbeck Offshore Services, Inc. received court approval to access $50 million of a proposed $75 million in debtor-in-possession financing on an interim basis, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The final hearing is scheduled for June 15.

Hornbeck said its restructuring support agreement calls for a $75 million DIP term loan facility to be provided by existing creditors and permitted use of existing cash on hand and cash generated from operations to support the business during the financial restructuring process.

Under the agreement, $56.25 million of the DIP financing will be funded by members of a secured lender group, and $18.75 million will be funded by members of an unsecured noteholder committee.

The DIP facility will mature in six months and will bear interest at a rate of Libor plus 1,250 basis points with a 1% Libor floor.

Hornbeck is a Covington, La.-based provider of offshore supply vessels primarily in the Gulf of Mexico and Latin America. The company filed bankruptcy on May 19 under Chapter 11 case number 20-32679.

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