Boston, MA 10/03/2014 (wallstreetpr) – Cal Dive International, Inc. (NYSE:DVR) disclosed that it expected to conclude refinancing facility on October 3. The refinancing has become necessary for it after the company’s current credit facility came to an end in September.
Updating Refinance
According to the Cal Dive International, Inc. (NYSE:DVR)’s statement to the media, it was continuously working with the financial institutions for a refinancing of its first lien revolving credit facility. The company had revolving credit facility of $125.0 million that was extended till September 30. It had to obtain waivers from its current lenders and its second lien facility lenders, which required refinancing.
Cal Dive International, Inc. (NYSE:DVR) said that it was working for the amount of a maximum of $125.0 million credit facility. The company disclosed that though it has been engaged in negotiations, it is yet to finalize a deal with financial institutions. However, it has indicated that there was significant progress towards reaching an agreement.
The company said that a refinancing deal could be finalized by October 3. It said that it was working with its current lenders under the initial lien revolving credit facility besides second lien facility after getting extension of their waivers.
Interest Payment
For the second quarter, Cal Dive International, Inc. (NYSE:DVR) paid net interest of $8.0 million, which was $3.3 million more than the second quarter of 2013. The company attributed it to increased debt levels due to working capital requirements for its Mexico facility. This apart, it had to pay increased interest rate margin on its outstanding debts.
Its total debt was $261.3 million at the end of June quarter. It consisted of convertible notes of $86.25 million, senior secured second lien term loan of $100 million and outstanding revolving credit facility of $77.6 million.
This indicates that the current negotiation was failing to reach the logical ends due to some irritant issue such as interest rate. The company appears to be unable to attract a cheaper rate of interest. However, it may have to settle with the financial institutions offer of interest rates since the current credit facility came to an end in September.
