Cal Dive International, Inc. (OTC: CDVI) (the “Company”) announced today
that it has entered into a Limited Waiver, Agreement and Amendment No. 9
to its first lien credit agreement which maintains the size of the
revolving credit facility at $100.0 million through December 1, 2014,
and waives the Company’s non-compliance with certain financial covenants
and payment obligations under the Credit Agreement, as well as the cross
defaults resulting from similar defaults under the Company’s second lien
credit facility, through December 1, 2014. As amended, the revolving
credit facility capacity will step-down from $100.0 million to $90.0
million on December 2, 2014. The Company also continues to work
cooperatively with the lenders under its second lien credit facility and
its convertible notes, as well as its suppliers and vendors.
The Amendment provides the Company with additional time to continue to
pursue financing transactions, non-core asset sales and other strategic
efforts that could provide the Company with additional liquidity and
allow for the repayment, restructuring or refinancing of the Company’s
first lien revolving credit facility and other funded debt. While the
Company remains hopeful that these efforts will be successful, there can
be no assurance that an agreement on such a transaction will be reached
by the waiver expiration. If an agreement cannot be reached in a timely
fashion, the Company will have to consider other, potentially less
satisfactory measures to provide liquidity for its operations.
The Company also announced today that it has been notified by the New
York Stock Exchange (“NYSE”) that it had determined to commence
proceedings to delist the Company’s common stock in view of its
abnormally low trading price. The NYSE made a public announcement of
this decision on October 29, 2014, and trading in the Company’s common
stock on the NYSE was suspended immediately. As previously disclosed, on
September 8, 2014, the Company was notified by the NYSE that it no
longer satisfied the minimum share price standard for continued listing
of its common stock through its failure to maintain an average closing
price per share of not less than $1.00 over a consecutive 30 day period.
Under the NYSE delisting procedure, the Company has 10 business days to
appeal the NYSE’s delisting decision, and the Company does not intend to
appeal this decision. The Company’s common stock now trades on the OTC
under the symbol “CDVI.”
About Cal Dive International, Inc.
Cal Dive International, Inc., headquartered in Houston, Texas, is a
marine contractor that provides manned diving, pipelay and pipe burial,
platform installation and salvage, and light well intervention services
to the offshore oil and natural gas industry on the Gulf of Mexico OCS,
Northeastern U.S., Latin America, Southeast Asia, China, Australia, West
Africa, the Middle East, and Europe, with a diversified fleet of dive
support vessels and construction barges.
Cautionary Statement
This press release may include “forward-looking” statements that are
generally identifiable through the use of words such as “believe,”
“expect,” “anticipate,” “intend,” “plan,” “estimate,” “project” and
similar expressions and include any statements that are made regarding
earnings expectations. The forward-looking statements speak only as of
the date of this release, and the Company undertakes no obligation to
update or revise such statements to reflect new information or events as
they occur. These statements are based on a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Company.
Investors are cautioned that any such statements are not guarantees of
future performance and that actual future results may differ materially
due to a variety of factors. Factors that could cause the Company’s
results to differ materially include: the Company’s significant
indebtedness and constraints on the Company’s liquidity, the impact the
delisting of the Company’s common stock from the NYSE may have on the
liquidity and market price of its common stock and on its ability to
conduct equity financings and access the public capital markets, current
economic and financial market conditions, changes in commodity prices
for natural gas and oil, and in the level of offshore exploration,
development and production activity in the oil and natural gas industry,
the Company’s inability to obtain contracts with favorable pricing terms
if there is a downturn in its business cycle, intense competition and
pricing pressure in the Company’s industry, the risks of cost overruns
on fixed price contracts, the uncertainties inherent in competitive
bidding for work, the operational risks inherent in the Company’s
business, risks associated with the Company’s increasing presence
internationally, and other risks detailed in the Company’s most recently
filed Annual Report on Form 10-K.
Copyright Business Wire 2014