Hornbeck closes on new revolver with larger borrowing base

New York, Oct. 2 - Hornbeck Offshore Services, Inc. said it completed a new five-year senior secured revolving credit facility with a bigger borrowing base, extended maturity, lower interest rate and more flexible covenants.

The new loan increases the borrowing base to $100 million from $60 million. There is an accordion feature that could increase the facility to $250 million.

Maturity on the revolver is September 2011 versus February 2009 for the old loan.

Pricing is reduced by 100 basis points to 50 bps from 150 bps at the low end of the pricing grid and 200 bps to 150 bps from 350 bps at the high end. The current rate is Libor plus 50 bps. The unused fee is lowered by about 10 to 20 bps.

As of Sept. 30, Hornbeck had no borrowings outstanding.

The loan is currently collateralized by eight offshore supply vessels and four ocean-going tugs along with associated personalty.

The Covington, La., provider of offshore supply vessels can use proceeds for working capital and general corporate purposes.

Wells Fargo Bank, NA was lead arranger, bookrunner and administrative agent and Comerica Bank was syndication agent.

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