Helix Energy Prices $550 Million of 9.5% Senior Unsecured Notes
Helix Energy Solutions has priced a private offering of $550 million aggregate principal amount of 9.5% Senior Unsecured Notes due 2016. The transaction was upsized from the previously announced offering size of $500 million. Interest on the notes is payable January 15 and July 15 of each year, beginning July 15, 2008. Certain of the Company's domestic subsidiaries will fully and unconditionally guarantee the notes.
The Company intends to use the net proceeds of the proposed offering to repay outstanding indebtedness under its senior secured credit facilities.
The notes will not initially be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act. The notes may be resold by the initial purchasers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S.
Martin Ferron, Helix's President and Chief Executive Officer, stated, "This financing, and the related amendment to our existing Senior Credit Facilities which we will enter into in conjunction with this financing, provide Helix with significant flexibility to pursue the strategic business initiatives that we believe will be key to continued growth, and will allow us to further enhance shareholder value. The ability to complete this offering in a challenging credit market highlights the strength of our business model."
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