Following the announcement that its board had approved a massive $720 million newbuilding program earlier in the week, Hornbeck Offshore Services, Inc., Covington, LA, said today that it would increase the size of its previously announced underwritten public offering of shares of its common stock from 6,750,000 shares to 7,000,000 shares. HOS plans to price the offering at $30.00 per share, for total gross proceeds of $210 million before underwriting discounts, commissions and offering expenses.
HOS has granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares. The offering is expected to close on November 16, 2011, subject to customary conditions.
HOS intends to use the net proceeds from the offering to partially fund its latest newbuild construction program comprised of 16 new generation DP2 offshore supply vessels, which was announced on November 7, 2011.
Additionally, the offering proceeds may be used in connection with possible future acquisitions and additional new vessel construction, as well as for general corporate purposes.
Barclays Capital, J.P. Morgan and Wells Fargo Securities acted as joint book-running managers for the offering. Global Hunter Securities, LLC, Johnson Rice & Company L.L.C., Pritchard Capital Partners, LLC, Simmons & Company International, Capital One Southcoast, Clarkson Capital Markets, Howard Weil Incorporated and IBERIA Capital Partners, L.L.C. acted as co-managers.
November 9, 2011