Hercules Offshore to explore strategic alternatives

Hercules Offshore Inc. (NASDAQ: HERO) has formed a special committee comprising all the independent members of its board of directors to consider and explore various strategic alternatives potentially available to Hercules Offshore in order to maximize the value of the company.

The formation of the Special Committee is not in response to any proposal received by the Company or an approach by a third party.

The Special Committee is authorized to explore, review, and evaluate any potential strategic transaction involving the company and any alternatives thereto, including, but not limited to, the sale of the company, a merger or share exchange involving the company, the sale of some or all of the company's assets, and a recapitalization of the company (whether by issuance of equity or debt securities, incurrence of additional indebtedness, or issuance of derivative securities thereof).

No decision has been made to engage in any particular transaction or transactions. There can be no assurance that the Special Committee or the board will authorize the pursuit of any strategic alternative. Moreover, there can be no assurance with respect to the terms or the timing of any transaction, or whether any transaction will ultimately occur.

Hercules Offshore also announced that the Special Committee has engaged PJT Partners as its financial advisor and Akin Gump Strauss Hauer & Feld LLP as its legal counsel.

As of Feb. 9, the company had approximately $514 million of cash, which includes $200 million held in escrow for the final delivery payment for the Hercules Highlander, $450 million of total debt outstanding, and 20 million shares of common stock outstanding.

Headquartered in Houston, Hercules Offshore Inc. operates a fleet of 27 jackup rigs, including one rig under construction, and 19 liftboats. The company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several shallow-water provinces around the world.

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