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Cal Dive amends loan, modifying leverage ratio, amortization, pricing
By Sara Rosenberg
New York, July 23 - Cal Dive International Inc. amended its credit facility, temporarily increasing the leverage ratio, reducing quarterly amortization on the term loan and revising some pricing, according to an 8-K filed with the Securities and Exchange Commission on Friday.
Under the amendment, the leverage ratio was increased to 4.75 times from 3.75 times through June 30, 2011, decreasing to 4.25 times through Sept. 30, 2011 and returning to 3.75 times thereafter.
The quarterly payment on the term loan, of which $195 million is now outstanding, decreases to $14.8 million from $20 million beginning with the next scheduled payment on Sept. 30. The deferred amortization will be repaid upon maturity of the credit facility in December 2012.
As for pricing, the revolver is now at Libor plus 300 basis points, up from Libor plus 225 bps. The pricing grid ranges from Libor plus 275 bps to 400 bps, whereas before it ranged from Libor plus 175 bps to 250 bps.
Also, term loan lenders who agreed to delay their amortization payments now have pricing that is subject to a leverage-based grid that ranges from Libor plus 325 bps to 400 bps. Lenders who did defer amortization are still getting pricing of Libor plus 225 bps.
In addition, the amendment permits the transfer of saturation diving vessels, the Eclipse and Texas, to an international subsidiary and their corresponding release as collateral under the credit facility.
The amendment was completed on July 19.
Bank of America is the administrative agent on the deal.
As a result of the amendment, the company has full access to its $300 million revolver.
Cal Dive is a Houston-based marine contractor that provides an integrated offshore construction service to its customers.
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