Hercules Offshore Inc. (Nasdaq: HERO) has begun a cash tender offer for any and all of its outstanding 7.125% senior secured notes due 2017 (CUSIP Nos. 427093AF6 and U42714AC6) and a solicitation of consents to certain proposed amendments to the indenture governing the notes. As of March 12, there is $300 million in aggregate principal amount of the notes outstanding. The tender offer is scheduled to expire at 11:59 p.m., New York City time, on April 9.
The initial settlement is expected to occur on March 26, and the final settlement is expected to be on April 10. Hercules Offshore has engaged Deutsche Bank Securities Inc. to act as dealer manager and solicitation agent in connection with the tender offer.
Hercules Offshore has also announced its intention, subject to market conditions, to offer, in a private placement, up to $300 million aggregate principal amount of senior notes due 2022. The company expects to use the net proceeds from this offering, together with cash on hand, to fund its pending tender offer and consent solicitation for its 7.125% senior secured notes due 2017 and to redeem any of the notes not purchased in the tender offer.