September 30, 2006
Hornbeck Offshore increases size of share offering
Hornbeck Offshore Services, Inc. (NYSE: HOS ) President and CEO Todd M. Hornbeck, will ring the Closing Bell at the New York Stock Exchange today.
This event marks the pricing of the company's recent public stock offering and private placement of 6.125% senior notes that will raise approximately $290 million in aggregate gross proceeds for the company. These combined proceeds will fund, in part, two new vessel construction programs announced Monday.
Hornbeck Offshore has agreed to sell in a private placement an additional $75,000,000 aggregate principal amount of its 6.125% Senior Notes due 2014 (the "Additional Notes") under its indenture dated as of November 23, 2004. The Additional Notes were priced at 99.25% of principal amount to yield 6.232%. The closing is expected to occur on October 4, 2005, subject to customary closing conditions.
The company also announced today that it priced its public offering (the "Offering") of 6,100,000 shares of its common stock at $35.35 per share, for total gross proceeds of $215.6 million before underwriting discounts, commissions and offering expenses.
This represents an increase over the 4,750,000 share offering announced September 26, 2005.
In addition to the shares to be offered by the company, the offering will include an additional 2,000,000 shares to be sold by a selling stockholder, and the underwriters have a 30-day option to purchase up to 1,215,000 additional shares of common stock from the company at the same price per share.
Hornbeck Offshore's latest stock closing price of $36.10 on the New York Stock Exchange was up $1.90, or 5.6%, over last Friday's close prior to the announcement of the Offering.
The Offering is expected to close on October 5, 2005, subject to customary conditions.