Cal Dive refinances its debt

Cal Dive International Inc.

Cal Dive International Inc. (NYSE: DVR) 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, Cal Dive 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, 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 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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...