Helix Announces New $900 Million Credit Facility and Notice of Redemption of $275 Million 9.5% Senior Unsecured Notes
Helix Energy Solutions Group, Inc. (NYSE: HLX) announced today that it
has entered into a credit agreement with a syndicated bank lending group
in the amount of $900 million, consisting of a $600 million revolving
credit facility and a $300 million term loan. The term loan will be
funded in conjunction with the early redemption of the Company’s
remaining $275 million Senior Unsecured Notes. The new facility replaces
the Company’s existing credit facility that would have expired in July
2015.
The key features of the new secured credit facility include:
-
Initial pricing at Libor plus 275 basis points, with an undrawn fee of
50 basis points
-
Annual amortization payments on the term loan of 5% in years 1 and 2,
and 10% per annum in years 3 through 5 with a balloon payment at
maturity
-
$200 million accordion feature
-
5 year term
In conjunction with the new credit agreement, Helix notified the Trustee
of its 9.5% Senior Unsecured Notes of the Company’s intent to redeem all
of the outstanding notes. On July 22nd, Helix will redeem the
$275 million outstanding notes with the proceeds from its new term loan.
Helix will pay a call premium of $6.5 million for early redemption of
the notes and will incur a noncash charge of $8.7 million to expense the
deferred charges associated with the existing credit facility and Senior
Unsecured Notes.
“The new credit facility along with the early redemption of our Senior
Unsecured Notes provides Helix with a lower cost of capital along with
the financial support to execute our strategy of growing our well
intervention and robotics businesses,” commented Anthony Tripodo,
Executive Vice President and Chief Financial Officer of Helix.
Merrill Lynch, Pierce Fenner & Smith Inc., and Wells Fargo Securities,
LLC acted as Joint Lead Arrangers and Joint Bookrunning Managers of the
new facilities. Bank of America, N.A. will continue to serve as
Administrative Agent.
About Helix
Helix Energy Solutions Group, headquartered in Houston, Texas, is an
international offshore energy company that provides key life of field
services to the energy market. For more information about Helix, please
visit our website at www.HelixESG.com.
Forward-Looking Statements
Statements included in this news release regarding the Company’s
strategy and other statements that are not historical facts are
forward-looking statements. These statements involve risks and
uncertainties including, but not limited to the performance of contracts
by suppliers, customers and partners; actions by governmental and
regulatory authorities; operating hazards and delays; employee
management issues; local, national and worldwide economic conditions;
complexities of global political and economic developments; geologic
risks; volatility of oil and gas prices; market conditions; and other
risks described from time to time in our reports filed with the
Securities and Exchange Commission ("SEC"), including the Company's most
recently filed Annual Report on Form 10-K and in the Company’s other
filings with the SEC, which are available free of charge on the SEC’s
website at www.sec.gov.
We assume no obligation and do not intend to update these
forward-looking statements except as required by law.
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