Cal Dive Announces Debt Refinancing
May 09 2014 - 2:05PM
Business Wire
Cal Dive International, Inc. (NYSE: DVR) announces that it has
refinanced its debt to provide more flexibility and liquidity for
ongoing and future construction work, primarily in Mexico. The
Company has entered into a $100 million senior secured second lien
term loan facility, that includes a new loan of $80 million and the
conversion of the Company’s existing $20 million unsecured term
loan to a secured term loan under the second lien facility. Both
term loans under the second lien facility mature in 2019 with no
scheduled amortization. The $20 million term loan bears interest at
Libor plus 6.75% and the $80 million term loan bears interest at
Libor plus 11.75%. The net proceeds of the loan will be used to
repay the Company’s outstanding $29.7 million secured term loan
under its credit facility and $45.0 million of outstanding
borrowings under its revolving credit facility. As part of the
refinancing, the Company is permitted to obtain up to $75 million
in local project financing for international projects, and intends
to transition from relying on its revolving credit facility for the
working capital requirements for its large construction projects to
utilizing local project financing for this purpose. The revolving
credit facility capacity, already scheduled to decrease to $110
million by the end of July 2014, will be further reduced by $5
million per month thereafter until it reaches $85 million by the
end of 2014. With the refinancing, the Company’s total debt on a
pro forma basis as of March 31, 2014 will consist of $86.25 million
in convertible notes, a $100 million senior secured second lien
facility and $60.3 million outstanding under a senior secured
revolving credit facility.
Quinn Hébert, Cal Dive’s Chairman, President and Chief Executive
Officer, stated, “We are pleased to have successfully completed the
refinancing of our balance sheet. The new debt structure will
provide us more flexibility and liquidity, which will enable us to
take on more large international construction projects. These
projects often require significant amounts of working capital and
we want to be able to take full advantage of the opportunities in
the market.”
Conference Call Information
Further details will be provided during Cal Dive’s earnings
conference call, scheduled for 3:00 p.m. Central Time today, May 9,
2014. The teleconference dial-in numbers are: (866) 953-6856
(domestic), (617) 399-3480 (international), passcode 64247475.
Investors will be able to obtain the slide presentation and listen
to the live conference call broadcast from the Investor Relations
page at www.caldive.com.
A replay of the call will also be available from the Investor
Relations-Audio Archives page. A telephonic replay of the
conference call will be available beginning approximately three
hours after the completion of the conference call and will remain
available for one week. To access the replay, call (888) 286-8010
(domestic) or (617) 801-6888 (international), passcode
19517484.
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 surface and saturation dive
support vessels and construction barges.
Cal Dive International, Inc.Brent Smith, (713) 361-2634Executive
Vice President, ChiefFinancial Officer and Treasurer
Cal Dive (CE) (USOTC:CDVIQ)
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