Hornbeck funded the cash portion of the purchase price with a combination of borrowings under the Company's revolving credit facility and proceeds from a private offering of the Company's common stock. In connection with such private offering, which was primarily undertaken to fund a portion of the acquisition costs, Hornbeck received payment or binding subscriptions for $30.0 million of new common stock of the Company, including the shares issued directly to Candy Marine Investment Corporation, to fund the equity portion of the purchase price. In addition, concurrent with the transaction, the Company increased the borrowing base on its revolver from $25.0 million to $50.0 million. Hornbeck plans to continue operating the acquired OSVs, which have an average age of approximately 4.5 years, in the deepwater Gulf of Mexico.
Todd Hornbeck, President and CEO, stated, "We are very excited about this acquisition, which adds a sixth new class of deepwater OSVs to complement our existing fleet. This will further diversify our service offering to include additional vessels that are well suited not only for the deepwater, but for deeper drilling on the Continental Shelf of the Gulf of Mexico. With this purchase, our current deepwater OSV fleet will increase from 15 to 20 vessels, without adding capacity to the market. We will have 22 deepwater OSVs after the delivery of our next two newbuilds later this year. Based on our projections, this transaction will be accretive to earnings. In addition, our use of private equity to fund the majority of the purchase price will improve our leverage and interest coverage ratios."
Most Popular Articles