AUGUST 29, 2013 — Hornbeck Offshore Services, Inc. (NYSE: HOS) reports that it has closed the previously announced sale of substantially all of the assets and business of its Downstream segment's tug and tank barge fleet to Genesis Marine, LLC ), an affiliate of Genesis Energy L.P. (NYSE:GEL), for cash consideration of $230 million (see earlier story).
Hornbeck received approximately $224 million in proceeds, net of expenses and estimated cash taxes, from this transaction, that it says will be used for general corporate purposes that may include retirement of debt or funding for the acquisition, construction or retrofit of vessels.
The Downstream vessels sold to Genesis comprised Hornbeck's active fleet of nine ocean-going tugs and nine double-hulled tank barges.
In connection with the closing, Hornbeck and Genesis entered into transition service agreements in order to ensure a smooth transition of operations and services for both employees and customers.
J.P. Morgan Securities LLC acted as exclusive financial advisor to Hornbeck Offshore with respect to this transaction.