Cal Dive plans $1.063 billion credit facility for Remington buy

By Sara Rosenberg

New York, Jan. 23 - Cal Dive International Inc. plans to obtain a new $1.063 billion senior secured credit facility to help fund its acquisition of Remington Oil and Gas Corp., company officials said in a conference call Monday.

Bank of America has provided the underwritten commitment for the deal.

The facility is expected to consist of an $813 million term loan and a $250 million revolver, officials said in the call.

Amortization on the term loan will be 1% a year with a bullet payment due at maturity.

Pro forma, as of Sept. 30, for all the debt, interest coverage would be 7.1 times.

Under the acquisition agreement, Cal Dive will purchase Remington in a transaction valued at $1.4 billion. Remington stockholders will receive in the merger $27.00 in cash and 0.436 shares of Cal Dive stock for each Remington share they own.

The acquisition is conditioned upon, among other things, the approval of Remington stockholders and customary regulatory approvals, and is expected to be completed in the second quarter.

Cal Dive is a Houston-based energy service company. Remington is a Dallas-based explorer, developer and producer of oil and gas reserves.

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