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CIT Northbridge Agents $100MM Revolver for Hornbeck Offshore Services

July 08, 2019, 08:55 AM
Filed Under: Industry News

Hornbeck Offshore Services, Inc. announced that it entered into a new $100 million senior secured asset-based revolving credit facility.

The Administrative and Collateral Agent of the Senior Credit Facility is CIT Northbridge Credit LLC. The Company's exclusive financial advisor in connection with the transaction and the sole lead arranger of the facility was Oppenheimer & Co. Inc. and the Company's legal advisors were Latham & Watkins LLP and Winstead PC.

Loans under the Senior Credit Facility accrue interest at LIBOR plus a floating-rate spread of 5.00% for the life of the facility. The fully-funded Senior Credit Facility is secured by first priority liens on certain eligible receivables, certain restricted cash amounts and related assets.

The Senior Credit Facility enhances the Company's financial flexibility and is comprised of two tranches that will rebalance each month based on the variable eligible receivables-backed borrowing base. The unrestricted receivables-backed tranche will mature in 2022, and the restricted cash-backed tranche will mature in 2025. The receivables-backed tranche may be used for working capital and general corporate purposes, including the repayment or refinancing of existing debt, subject to, among other things, compliance with certain requirements. The cash-backed tranche may, over time, rebalance to the receivables-backed tranche as eligible receivables increase and may be refinanced over time.

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