The subordinated note holders have an option to purchase up to an additional $6.25 million in subordinated notes at a 20% discount of the principal amount, which would result in additional gross proceeds to the Company of up to $5 million.
The Company also announced that the DLB SEA HORIZON, the Company's combination derrick/pipelay barge based in Southeast Asia, will replace the LB GULF HORIZON on the Israel Electric project and will mobilize to Israel within the next few days. As previously announced, the LB GULF HORIZON caught fire offshore and is now at a shipyard in South Carolina undergoing an initial damage assessment.
"This additional funding from our existing subordinated lenders provides additional liquidity at an extremely critical time to meet our immediate cash need to collateralize the letter of credit to Israel Electric. It will also provide additional working capital required to support our operations. Our focus now returns to performance and the opportunity to generate the cash from operations that will provide continuing liquidity,'' said Bill J. Lam, President and Chief Executive Officer of Horizon Offshore.
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