Helix Energy Solutions Group, Inc. (NYSE: HLX) announced today that it
has amended its credit agreement to provide the Company with increased
financial flexibility through the third quarter of 2017. The Amendment
includes the following items:
-
Increasing the trailing four quarter maximum leverage ratio to 5.5x
for the quarter ending March 31, 2016 then decreasing gradually over
successive quarters to 3.5x by December 31, 2017.
-
Decreasing the trailing four quarter minimum interest coverage ratio
to 2.5x for the quarter ending March 31, 2016 then increasing to 3.0x
by June 30, 2017.
-
Reduction of the credit facility revolver commitment from $600 million
to $400 million, which will save the Company $1 million annually in
commitment fees.
-
Adding a cash requirement covenant of $50 million if our leverage
ratio exceeds 3.5x, $100 million if it exceeds 4.0x and $150 million
if it exceeds 4.5x.
Anthony Tripodo, Executive Vice President and Chief Financial Officer of
Helix, stated, "We are pleased to announce the Amendment of our Credit
Facility. Although the Company ended 2015 with nearly $750 million of
total liquidity, we believe it is prudent to obtain longer term
flexibility with our credit facility given the persistent weak industry
environment as well as our remaining capital commitments. We are very
appreciative of the support from our lending group."
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is
an international offshore energy services company that provides
specialty services to the offshore energy industry, with a focus on well
intervention and robotics operations. For more information about Helix,
please visit our website at www.HelixESG.com.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks, uncertainties and assumptions that could cause our results to
differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements of
historical fact, are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including, without
limitation, any statements regarding our strategy; any statements
regarding future utilization; any projections of financial items; future
operations expenditures; any statements regarding the plans, strategies
and objectives of management for future operations; any statement
concerning developments; any statements regarding future economic
conditions or performance; any statements of expectation or belief; and
any statements of assumptions underlying any of the foregoing. The
forward-looking statements are subject to a number of known and unknown
risks, uncertainties and other factors including but not limited to the
performance of contracts by suppliers, customers and partners; actions
by governmental and regulatory authorities; operating hazards and
delays; our ultimate ability to realize current backlog; employee
management issues; complexities of global political and economic
developments; geologic risks; volatility of oil and gas prices 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 the securities laws.
Social Media
From time to time we provide information about Helix on Twitter (@Helix_ESG)
and LinkedIn (www.linkedin.com/company/helix-energy-solutions-group).
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