Hornbeck Offshore Services buoyed by new credit facility

Offshore support vessels operator Hornbeck Offshore Services Inc (NYSE:HOS) has secured a new credit facility.

The shares were up more than 23% in pre-market trading on Friday after the company revealed on Thursday evening that it had refinanced its existing US$200 million senior secured revolving credit facility with a new first-lien delayed-draw credit US$300mln facility.

The six-year term of the new credit facility extends the maturity of the old credit Facility from February 2020 to June 2023.

The new facility carries an interest rate equivalent to the London interbank offer rate (LIBOR) or the US base rate – whichever is the lower.

The company said it focused its efforts on lowering the interest rate in, and limiting the call protection to, 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, Hornbeck said.

Story by ProactiveInvestors