HOUSTON – (COMMERCIAL THREAD) – Helix Energy Solutions Group, Inc. (“Helix”) (NYSE: HLX) today announced that it has entered into a new $ 80 million revolving asset-based credit facility (the “ABL Facility”) with a syndicated banking group. The ABL facility replaces Helix’s existing credit facility and term loan, which were simultaneously repaid in full.
The main features of the ABL facility include:
$ 80 million revolving credit facility, subject to the availability of the borrowing base
Term of five years or 91 days prior to maturity of the Helix 2026 Senior Convertible Notes
Separate US and UK tranches of $ 45 million and $ 35 million, respectively
Initial pricing at LIBOR or SONIA plus 150 to 200 basis points or the base rate plus 50 to 100 basis points, with an undrawn commission of 37.5 to 50 basis points
Additional $ 70 million accordion, subject to lender approval
Erik Staffeldt, Executive Vice President and CFO of Helix, commented, “We are delighted to have executed the new ABL facility, which will give us access to working capital financing as needed during our post-capital expansion phase. We anticipate that the facility will provide greater flexibility to manage our day-to-day operations and financial commitment compliance requirements. Our initial borrowing base is approximately $ 72 million, and we expect it to fluctuate between $ 30 million and $ 70 million depending on seasonal and geographic changes in our business. The ABL facility will initially be used to support our existing letters of credit, and our initial availability, net of letters of credit, is approximately $ 70 million with no outstanding borrowing. We are pleased to be able to continue our banking relationships with the support of our lenders.
Bank of America, NA and Wells Fargo Bank, NA have acted as Joint Principal Arrangers, and Bank of America, NA will continue to act as Administrative Agent.
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is an international offshore energy services company that provides specialist services to the offshore energy industry, with a focus on intervention on wells and robotics operations. For more information about Helix, please visit our website at www.HelixESG.com.