Hornbeck to price $200 million 20-year convertibles talked at 1.625%-2.125%, up 32.5%-37.5%

By Kenneth Lim

Boston, Nov. 6 - Hornbeck Offshore Services Inc. plans to price Tuesday after the market closes $200 million of 20-year convertible senior notes talked at a coupon of 1.625% to 2.125% and an initial conversion premium of 32.5% to 37.5%.

The notes will be offered at par.

There is a greenshoe for a further $30 million.

Jefferies and Co. and Bear Stearns are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable for the first five years and may be called subject to a 135% hurdle in years six and seven. There are puts in years seven, 10 and 15.

Hornbeck, a Covington, La.-based provider of offshore supply vessels to the oil and gas industry, said part of the proceeds will be used to fund convertible note hedge and warrant transactions. The company also earmarked 30% of the proceeds to buy back its common stock and for general purposes that could include acquisitions.

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