New Issue: Hornbeck upsizes to $375 million, prices eight-year notes at par to yield 5 7/8%

By Paul A. Harris

Portland, Ore., March 2 - Hornbeck Offshore Services, Inc. priced an upsized $375 million issue of eight-year senior notes (Ba3/BB-/) at par to yield 5 7/8% on Friday, according to a syndicate source.

The yield printed at the tight end of price talk, which was set in the 6% area.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal, which was upsized from $350 million.

The Covington, La.-based provider of marine services plans to use the proceeds to fund a tender for its 6 1/8% notes due 2014 and for general corporate purposes.

Issuer:	Hornbeck Offshore Services, Inc.
Amount:	$375 million, increased from $350 million
Maturity:	April 1, 2020
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Barclays Capital Inc., Wells Fargo Securities LLC
Co-managers:	Capital One Southcoast, Comerica Securities, DnB Markets
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	432 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2016, then callable at 102.938, 101.469, par on and after April 1, 2018
Equity clawback:	35% at 105.875 until April 1, 2015
Change-of-control put:	101%
Trade date:	March 2
Settlement date:	March 16
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6% area
Marketing:	Quick to market

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