Cal Dive Enters $150 Million Revolving Credit Facility

Cal Dive International has entered into a four-year, $150 million revolving credit facility with Bank of America, N.A. (administrative agent and lead arranger); Whitney Bank (documentation agent); Southwest Bank of Texas, N.A. (syndication agent); Bank One, N.A.; Comerica Bank; Natexis Bank; and Union Planters Bank. The amount available under the facility may be increased to $250 million at any time with the agreement of Cal Dive and existing or additional lenders.

The new credit facility, which replaces the company's $70 million asset- based revolving facility, is secured by the stock in certain CDI subsidiaries and contains a negative pledge on assets. The facility bears interest at LIBOR plus 75 to 175 basis points depending on CDI leverage and contains financial covenants relative to CDI's level of debt to EBITDA, fixed charge coverage and book value of assets coverage.

A. Wade Pursell, Chief Financial Officer of Cal Dive, commented, "One of our stated goals at the beginning of this year was to establish a flexible credit/capital structure to enable acquisitions in our Oil and Gas Production segment (both PUD's and mature properties) and our Production Facilities segment (Marco Polo - type transactions). This facility, which will initially be undrawn upon, achieves this goal. We are very pleased with the terms of this facility and the confidence demonstrated by the bank group."


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