Hercules Offshore Acquires Jackup
Hercules Offshore LLC has entered into a senior secured credit agreement and completed the acquisition of a jackup drilling rig in separate transactions.
On June 29, 2005, Hercules Offshore entered into a senior secured credit agreement with a syndicate of financial institutions. The agreement provides for a $140.0 million term loan and a $25.0 million revolving credit facility. The loans are secured by liens on the majority of the company's assets, including its drilling rigs and liftboats. The term loan matures in June 2010 and has quarterly principal payments in an amount equal to 1% per annum. The term loan and revolving credit facility provide for alternative interest rates at the Company's election, including interest at a rate of Libor plus 3.25%, which is the currently effective rate under the term loan. The proceeds of the term loan were used in part to refinance the original debt associated with the Company's previous rig and liftboat acquisitions and also to fund the acquisition of the jackup drilling rig, Jupiter, on June 30, 2005, as discussed below. No amounts are currently outstanding under the revolving credit facility. Citigroup Global Markets Inc. and Credit Suisse First Boston LLC acted as joint lead arrangers and joint book-running managers. Comerica Bank is the administrative agent.
On June 30, 2005, Hercules Offshore completed the acquisition of the Jupiter jackup drilling rig from Transocean Inc. The Jupiter is an independent leg cantilever jackup capable of working in water depths from 16 to 170 feet. The Jupiter, which will be renamed Rig 16, is currently stacked in the Middle East. The Company intends to refurbish the rig in the United Arab Emirates and seek work for the rig in nearby international markets.
Randy Stilley, Chief Executive Officer and President of Hercules Offshore,
noted today, "We are pleased to add Rig 16 to our fleet, as it provides us the
opportunity to establish an operating presence in a new market. In addition,
the consolidation of our debt into one credit facility will provide us with a
capital structure that allows us to manage our growth more efficiently."
- C&J Energy Files for Bankruptcy to Cut $1.4B in Debt (Jul 20)
- Hercules Offshore Sells Jackup at 94% Loss (Jul 12)
- Hercules Offshore Lays Off 60 at Houston Headquarters (Jun 13)
Company: Transocean Ltd. more info
Manages 53 Offshore Rigs
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