Hornbeck Offshore shares are up Monday after announcing a $100m financing deal at the end of last week .
The New York-traded, Louisiana-based company announced it had secured the revolving credit facility with unnamed lenders after the close Friday.
In early trading Monday, shares were up four cents, or 3.33%, to $1.24.
Loans under the agreement carry interest at Libor plus a floating-rate spread of 5% for the life of the facility.
The facility comes in two tranches, one backed by receivables and the other by cash.
The receivables-backed tranche will mature in 2022 and the cash-backed tranche in 2025.
The former may be used for working capital and general corporate purposes including repaying debt. The latter may rebalance to the receivables-backed tranche.
In May, chief executive Todd Hornbeck told TradeWinds that the company would continue to explore ways to pay down or push back near-term debt.
The company has $25.8m of 2019 notes on its books, alongside $224.3m of 2020 notes.
Unlike many of its competitors in the offshore space, Hornbeck did not declare bankruptcy during the sector's multi-year downturn.
Hornbeck said with things looking up, that dealing with debt would be easier.
“We will push that out. We will redo that debt," he said.
"How that’s going to be done? We’re still in negotiations.
"I think there’s an opportunity to get this done now that there’s a market," he said.
