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    Hornbeck buys deepwater OSVs

    Vessel & ROV News // July 18, 2003
    Hornbeck Offshore Services in the US has acquired five 220ft class deepwater offshore supply vessels and their related business from Candy Marine Investment Corporation, an affiliate of Candy Fleet Corporation, for an undisclosed amount of cash and Hornbeck common stock. Candy Fleet is a privately held marine vessel operator in the Gulf of Mexico.

    Hornbeck funded the cash portion of the purchase price with a combination of borrowings under its revolving credit facility and proceeds from a private offering of its common stock.

    In connection with the private offering, which was primarily undertaken to fund a portion of the acquisition costs, Hornbeck received payment or binding subscriptions for $30.0 million of new common stock, including the shares issued directly to Candy Marine Investment Corporation, to fund the equity portion of the purchase price.

    Concurrent with the transaction, Hornbeck increased the borrowing base on its revolver from $25.0 million to $50.0 million. Hornbeck plans to continue operating the acquired OSVs, which have an average age of approximately 4.5 years, in the deepwater Gulf of Mexico.

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