Hercules Increases Credit Facility to $75 Million
Hercules Offshore, Inc. has increased its revolving credit facility ("Revolver") to $75 million from $25 million, reduced the interest rate by 1 percent per annum, and extended the maturity by 2 years to June 29, 2010. The Revolver is led by Comerica Bank and also includes JPMorgan Chase Bank, N.A. and Amegy Bank National Association as lenders.
The Revolver increase was entered into as part of an amendment to Hercules' Credit Agreement dated June 29, 2005. In addition to the increase, the amendment provides for, among other things, the removal of the dollar limits on investments, capital expenditures and transfers of assets to and other investments in Hercules' subsidiaries that are not guarantors under the Credit Agreement.
"The Revolver increase improves our financial flexibility and reflects the confidence that our core group of lenders are placing in our management team and strategy," commented Steve Manz, Chief Financial Officer of Hercules. "Furthermore, by removing the dollar limits on investments, capital expenditures and transfers of assets to non-guarantors, we have also improved our operational flexibility."
Headquartered in Houston, Hercules owns a fleet of nine jackup drilling rigs
and 51 liftboats. The company offers a range of services to oil and gas
producers to meet their needs during drilling, well service, platform
inspection, maintenance, and decommissioning operations in shallow waters.
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