Hercules to Offer $250M of Convertible Senior Notes Due 2038

Hercules Offshore, Inc. announced its intention to offer, subject to market and other conditions, approximately $250 million aggregate principal amount of Convertible Senior Notes due 2038 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be convertible under certain circumstances into shares of the company's common stock (or cash or a combination of shares and cash, at the company's election). The interest rate, conversion price and other terms of the notes will be determined by negotiations between the company and the initial purchasers of the notes. Hercules Offshore also expects to grant the initial purchasers an option to purchase up to $37.5 million principal amount of additional notes to cover over-allotments.

Hercules Offshore intends to use the net proceeds from the offering to repurchase, concurrently with the offering, up to $50 million of shares of its common stock in privately negotiated transactions, to repay outstanding borrowings under its senior secured revolving credit facility (which totaled approximately $100 million as of May 23, 2008) and for other general corporate purposes.


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