Boston, MA 04/24/2014 (wallstreetpr) – Hercules Offshore, Inc. (NASDAQ:HERO) has planned to offer senior notes of up to $300 million aggregate principal amount in a private placement. Funds raised through this offer together with cash balances of the company would be used for funding the consent solicitation and pending tender offer of 7.125% secured notes due in 2017 and for redeeming notes not purchased in the tender offer.
Partnerships
Cairn India Limited has signed a contract with Hercules Offshore for utilising the Hercules Triumph, which was previously Discovery Triumph, in the Indian Ocean. Total value of the contract is about $36.6 million. This amount includes about $13 million of demobilization and mobilization fees that is to be earned over a stipulated period of 110 days.
Acquisitions
Pursuant to the determination of a final result of the acquisition bid made by Hercules along with its affiliates, Hercules International Holdings Ltd. and Hercules Offshore, Inc. (NASDAQ:HERO) for Discovery Offshore SA, Hercules has acquired 98.8% of the voting and capital rights in Discovery Offshore SA. Hercules has made a mandatory cash tender offer for all the remaining outstanding shares of Discovery in accordance with the Norwegian Securities Trading Act. Hercules Discovery has thereby received acceptance representing a total of 2,054,989 shares in the company. The squeeze out consists of the consideration paid for shares in Discovery during the mandatory acquisition bid. Deutsche Bank Securities and Pareto Securities are acting as financial advisors to Hercules Offshore on this transaction.
Raising capital
Hercules Offshore, Inc. (NASDAQ:HERO) has priced a private placement of $400,000,000 total principal amount of senior notes that are due in 2021. These bear an interest rate of 8.750% per annum and are being sold at par. Hercules Offshore has used the total proceeds from this offering along with cash on hand as well as the proceeds of nearly $104.0 million it has received from sales of its domestic liftboats, inland barge rigs and related assets to fund the acquisition of shares of Discovery Offshore S.A. Also, to make the final payment of $333.9 million due for Discovery Resilience and Discovery Triumph.
