Boston, MA 10/03/2013 (wallstreetpr) – On September 1, Hercules Offshore, Inc. (NASDAQ: HERO) announced good news of landing a contract form Cairn India for its “newly built premium jack-up rig Hercules Triumph”. This 110 day contract will provide the company with revenues of $36.6 million.
On October 1, HERO announced that on September 30, it received consent from the purchasers of it’s nearly 84.5% of its $300 million senior secured notes holders. These senior notes had a payout date of 2017 and attracted a 10.5% interest over the full term. The consent was received in response to its September 17 cash tender offer covering the entire $300 million worth senior notes.
HERO had announced that the settlement date for Notes tendered on or before Consent Expiration deadline of October 15. Those notes which are tendered after the consent expiration but before the expiration of time deadline will end up receiving only $1953.75 in lieu of $1000 principal amount. Senior note holders who choose not to participate in the tendering exercise will be allowed to hold the notes as outstanding until such time that company decides to redeem them as per earlier agreed agreements.
Analysts tracking the progress of this company believe that the earlier selloff of “barge and domestic lift boat businesses” has started to show results with HERO being more focused on the lucrative “shallow water offshore drilling” business. The stock was trading at $7.35 per share down 2.1% from its previous day close of $7.51. It has a market cap of $1.17 billion with annual sales of close to $785 million. It has recorded a income of $23 million over previous 12 months trailing period. The stick has been making a steady move towards growth with close to 1% jump in market value over the past one week. In the past 12 months, the stock has appreciated by close to 50%.
