U.S. offshore supply vessel operator Hornbeck Offshore has refinanced its existing $200 million credit facility with a new delayed-draw facility providing for up to $300 million of term loans.
The six-year term of the new credit facility extends the maturity of the old credit facility from February 2020 to June 2023.
According to the company’s statement on Thursday, the new facility enhances its financial flexibility by increasing liquidity from the currently applicable borrowing base of $75 million under the old credit facility, extending the maturity date that existed under the old credit facility by over three years, and eliminating all of the existing financial ratio maintenance covenants and the anti-cash hoarding provision of the old credit facility.
The vessel provider said that the new facility will be used for working capital and general corporate purposes, including the acquisition of distressed assets and/or the refinancing of existing debt.
The company also noted it focused its efforts on lowering the interest rate in the first two years.
“Should industry market conditions improve sufficiently by year three, the company may be able to refinance the new credit facility on more favorable terms at such time,” Hornbeck said.
At the end of the first quarter of this year, the vessel owner had 41 OSVs and two MPSVs stacked while expecting to have 46 OSVs and two MPSVs stacked by end of the third quarter 2017.