Cal Dive International gets $100 million secured second-lien term loan

By Susanna Moon

Chicago, May 9 - Cal Dive International, Inc. said it obtained a $100 million senior secured second-lien term loan facility, which includes a new $80 million loan and the conversion of the company's existing $20 million unsecured term loan to a secured term loan.

Interest is Libor plus 675 basis points for the $20 million term loan and Libor plus 1,175 bps for the $80 million term loan, according to a company press release.

The company said it refinanced its debt to provide more flexibility and liquidity for ongoing and future construction work, primarily in Mexico.

Both term loans under the second-lien facility mature in 2019 with no scheduled amortization.

Proceeds will be used to repay the company's outstanding $29.7 million secured term loan under its credit facility and $45 million of outstanding borrowings under its revolving credit facility.

As part of the refinancing, the company is permitted to obtain up to $75 million of local project financing for international projects and plans to transition from relying on its revolving credit facility for the working capital requirements for its large construction projects to using local project financing for this purpose.

The revolving credit facility, already scheduled to decrease to $110 million by the end of July, will be further reduced by $5 million per month thereafter until it reaches $85 million by the end of 2014.

With the refinancing, the company's total debt on a pro forma basis as of March 31 will consist of $86.25 million of convertible notes, the $100 million senior secured second-lien facility and $60.3 million outstanding under a senior secured revolving credit facility.

"The new debt structure will provide us more flexibility and liquidity, which will enable us to take on more large international construction projects," Quinn Hebert, Cal Dive's chairman, president and chief executive officer, said in the press release.

"These projects often require significant amounts of working capital, and we want to be able to take full advantage of the opportunities in the market."

Cal Dive is a Houston-based offshore oil and gas company.

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