Hercules Offshore calls $79.93 million 7 1/8% notes at 105.344

By Susanna Moon

Chicago, March 31 - Hercules Offshore, Inc. said it plans to redeem its $79,928,000 of remaining 7 1/8% senior secured notes due 2017 after the company's tender offer ends.

The company plans to redeem any outstanding 7 1/8% notes at 105.344% of par on April 29, according to a company press release.

Hercules said on March 26 that investors had tendered $220,072,000 principal amount, or about 73.36%, of its $300 million of outstanding 7 1/8% notes due 2017 by 5 p.m. ET on March 25, the consent expiration date.

Hercules Offshore accepted for purchase all of the tendered notes, with settlement set for March 26, and entered into a supplemental indenture to the notes, which eliminates most of the restrictive covenants and event of default and provides for the release of liens on collateral securing the notes.

As previously announced, the total purchase price will be $1,057.44, including a $6.25 consent payment, per $1,000 principal amount of notes tendered by the consent date.

Those who tender after the consent date will receive $1,051.19 per $1,000 principal amount.

The company also will pay accrued interest up to but excluding the payment date, which will be April 10 for remaining tenders.

The tender offer will continue until 11:59 p.m. ET on April 9. The offer began March 12.

Tendered notes may no longer be withdrawn, as of the consent date.

Holders tendering their notes will be required to consent to the proposed amendments to the note indenture.

The tender offer is conditioned on Hercules Offshore obtaining tenders from at least a majority of the notes by the consent date and proceeds of at least $300 million from a capital markets transaction by the initial settlement date.

Hercules priced $300 million of eight-year senior notes at par to yield 6¾% on March 12, as previously reported by Prospect News.

Deutsche Bank Securities Inc. is the dealer manager and solicitation agent. For questions, call Deutsche Bank Securities at 855 287-1922 or 212 250-7527 collect. For documentation, call D.F. King & Co., Inc. at 800 488-8075.

The company is a Houston-based provider of offshore drilling equipment and services.

© 2015 Prospect News.
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