"At Hornbeck Offshore, the term 'new generation' doesn’t just refer to the Company’s fleet of vessels, but also describes its mariners and managers. However, like any entrepreneurial success story, it began with the vision of its leader and founders and, in this case, was built upon the strong foundation and heritage of a 'first generation' that preceded it."
In 1980, after managing a publicly traded, multinational offshore marine services vessel company for 11 years, Larry Hornbeck launched his own vision of success by founding the original Hornbeck Offshore Services, Inc. in Galveston, Texas. One year later, he took the company public on the NASDAQ and traded under the symbol “HOSS.” Larry’s son Todd, at the time only 12 years old, took an early interest in learning the boat business at his father’s side. Summer jobs on the vessels, in the shipyards and around the office laid a foundation for his future in the industry.
Over the next 16 years, HOSS grew through new construction and seven acquisitions into the second largest offshore services vessel fleet in the U.S. Gulf of Mexico with over 100 vessels operating worldwide. HOSS was merged into Tidewater in 1996, however, Larry wisely retained the rights to the company name and logo to pass on to the next generation.
When HOSS started, there were about 67 boat companies in the Gulf of Mexico (GoM). But due to a long down-cycle in the 1980’s, most of HOSS’s competitors didn’t make it to the 1990’s. By 1991, there were only about 16 OSV companies left in the GoM. HOSS not only survived, it prospered and strong relationships were built. With the support and confidence of its customers, employees, vendors, bankers and investors, HOSS emerged to become one of the most successful marine service providers of the 1990’s.
Along the way, Todd Hornbeck was learning his own lessons. In 1991, Todd joined his dad full-time at HOSS and eventually became involved with every aspect of the commercial side of the business. Todd closely monitored all of the acquisitions that HOSS completed during the 1990’s, as well as its international expansion. Working from the bottom up, from deckhand to marketing executive, Todd learned the fundamentals of the boat business and what was required to lead a successful company.
Like his father, Todd’s entrepreneurial spirit called him to leave Tidewater after the merger. Recognizing that a customer need wasn’t fully being met, he left to form a new company that would construct a “new generation” of OSVs designed to service the then-emerging deepwater trend in the GoM. The new Hornbeck Offshore Services, Inc. was co-founded by Todd in New Orleans, Louisiana in 1997. In 2004, it was listed on the NYSE where it trades under the symbol “HOS.”
Like HOSS, the new company was started “from scratch.” But, unlike HOSS, it inherited the advantage of the Hornbeck legacy. The Hornbeck name and reputation, both in the “oil patch” and on “Wall Street,” was instrumental in opening doors for the new company. But to make sure it could step through those doors and be able to live up to that legacy, Todd began assembling a first-class team to lead HOS into the next generation.
The new Hornbeck Offshore management team was developed, one key person at a time; each of them marked by a common passion for the boat business, tempered by a lifetime of experience and first-hand knowledge of how to manage and market the volatile cycles of the oilfield industry. They believed they could build a “better mouse-trap,” a new generation of vessel capable of servicing the offshore energy industry well into the 21st century.
The guiding principles, business philosophies and marketing strategies learned during the HOSS years were brought to bear, as the new team began to develop the foundation upon which it would operate. In addition, out of a strong sense of mutual respect, many of the long-standing relationships that Larry and Todd had forged with customers, employees, vendors, bankers and investors over the years, stepped up to support HOS in its infancy and are still very much involved with the Company today.
June 1997HOS newco founded by Todd M. Hornbeck with $1m seed capital
HOS newco founded by Todd M. Hornbeck with $1m seed capital
to forming HOS, Mr. Hornbeck worked for the original Hornbeck Offshore
Services, Inc., from 1991 to 1996, serving in various positions relating to
business strategy and development. Following its merger with Tidewater Inc.
(NYSE:TDW) in March 1996, he accepted a position as Marketing Director—Gulf of
Mexico with Tidewater, where his responsibilities included managing
relationships and overall business development in the U.S. Gulf of Mexico
June 1997HOS newco and LEEVAC Marine merged to form HV Marine Services, Inc.
HOS newco and LEEVAC Marine merged to form HV Marine Services, Inc.
HV Marine Services, Inc. was founded by joining the assets and technical and management expertise of two well-established and respected names in the industry, LEEVAC Marine, Inc. and Hornbeck Offshore Services to create the next generation marine company.
August 1997Issued $5m in private equity
Issued $5m in private equity
September 1997Carl G. Annessa joins HOS
Carl G. Annessa joins HOS
Carl G. Annessa was appointed Executive Vice President in February 2005. Prior to that time, Mr. Annessa served as our Vice President of Operations beginning in September 1997. In February 2002, he was appointed Vice President and Chief Operating Officer. Mr. Annessa is responsible for operational oversight and design and implementation of our vessel construction programs. Prior to joining us, he was employed for 17 years by Tidewater Inc. (NYSE:TDW) in various technical and operational management positions, including management of large fleets of offshore supply vessels in the Arabian Gulf, Caribbean and West African markets, and was responsible for the design of several of Tidewater’s vessels. Mr. Annessa was employed for two years by Avondale Shipyards, Inc. as a naval architect before joining Tidewater. Mr. Annessa received a degree in naval architecture and mechanical engineering from the University of Michigan in 1979.
November 1997Launched 1st OSV Newbuild Program
Launched 1st OSV Newbuild Program
The first OSV newbuild program was originally comprised of seven 200 class DP-1 new generation OSVs, which were double the DWT and triple the liquid mud carrying capacity of the standard conventional vessels that were the norm in the industry at the time. Based on ever increasing customer demand for larger volumes, the last two vessels in the program were modified to include a 40’ plug to enhance carrying capacities. The 200 class DP-1 vessels delivered under this program included the HOS Crossfire, HOS Super H, HOS Dakota, HOS Thunderfoot and HOS Brigadoon. The 240 class DP-1 vessels delivered under this program included the HOS Deepwater and HOS Cornerstone.
June 1998Issued $20m sub debt + warrants
Issued $20m sub debt + warrants
March 1999Entered TTB market in Puerto Rico
Entered TTB market in Puerto Rico
June 1999Changed name to HORNBECK-LEEVAC Marine Services, Inc.
Changed name to HORNBECK-LEEVAC Marine Services, Inc.
June 2000Launched 2nd OSV newbuild program; introduced first DP-2 OSVs to domestic GoM
Launched 2nd OSV newbuild program; introduced first DP-2 OSVs to domestic GoM
The second OSV newbuild program was comprised of two 240E class DP-2 new generation OSVs and four 270 class DP-2 new generation OSVs. The HOS Innovator, the initial vessel delivered under this program, was the first U.S.-flagged OSV to be certified DP-2. The 240E class DP-2 vessels delivered under this program included the HOS Innovator and the HOS Dominator. The 270 class DP-2 vessels delivered under this program included the BJ Blue Ray, HOS Brimstone, HOS Stormridge and HOS Sandstorm.
November 2000Issued $35m private equity
Issued $35m in private equity
January 2001James O. Harp Jr. joins HOS
James O. Harp Jr. joins HOS
O. Harp, Jr. was appointed Executive Vice President in February 2005. Prior to
that time, Mr. Harp served as our Vice President and Chief Financial Officer
beginning in January 2001. Before joining us, Mr. Harp served as Vice President
in the Energy Group of RBC Dominion Securities Corporation, an investment
banking firm, from August 1999 to January 2001, and as Vice President in the
Energy Group of Jefferies & Company, Inc., an investment banking firm, from
June 1997 to August 1999. During his investment banking career, Mr. Harp worked
extensively with marine-related oil service companies, including as our
investment banker in connection with our private placement of common stock in
November 2000. From July 1982 to June 1997, he held roles of increasing
responsibility in the tax section of Arthur Andersen LLP, ultimately serving as
a Tax Principal, and had a significant concentration of international clients
in the oil service and maritime industries. Since April 1992, he has also
served as Treasurer and Director of SEISCO, Inc., a privately held seismic
brokerage company that he co-founded. Mr. Harp is an inactive certified public
accountant in Louisiana.
April 2001Entered deepwater ROV subsea OSV specialty market
Entered deepwater ROV subsea OSV specialty market
delivery of the HOS Innovator, the
vessel was immediately placed in service under a term contract with a large
oilfield service company. Outfitted with
an offshore crane and ROV package, the HOS
Innovator was the initial expansion into the production-oriented, deepwater
specialty service sector. Due to the
success of the HOS Innovator, the
second 240E class vessel delivered under OSV Newbuild Program #2, the HOS Dominator, was awarded a term
contract with the same oilfield service company to operate as a deepwater
specialty service vessel.
May 2001Acquired TTB fleet from Amerada Hess
Acquired TTB fleet from Amerada Hess
May 2001, we added nine ocean-going tugs and nine ocean-going tank barges
through the transformational acquisition of the Spentonbush/Red Star Fleet from
affiliates of Amerada Hess for $28 million in cash. As part of the acquisition, Amerada Hess
entered into a long-term contract of affreightment (“COA”) pursuant to which
Amerada Hess committed to use HOS as its exclusive marine logistics provider
and transporter of liquid petroleum products in the northeastern U.S.,
committing to ship a minimum of 45mm barrels of refined products annually
through March 2006. In addition to
significantly expanding our fleet capacity, the concurrent five-year COA with
Amerada Hess provided the TTB Segment immediate market scale in the northeast
U.S. Under the contract, we were also
entitled to coordinate marine logistics for Amerada Hess in the southeastern
July 2001Issued $175m senior notes
Issued $175m in senior notes
July 2001, we issued $175 million in senior unsecured notes with a coupon of 10.625%. Moody’s and Standard & Poors assigned a
B1/B+ rating to the notes and a B1/B+ senior corporate rating, each with a
stable rating outlook. The bonds were
used to refinance all of our existing debt and fund payments for newbuild
September 2001Terrorist attacks
October 2001Issued $15m in private equity and concurrent $15m warrant buy-back
Issued $15m in private equity and concurrent $15m warrant buy-back
October 2001, we completed the purchase of all outstanding warrants for an
aggregate purchase price of $14.5 million.
The repurchase of the warrants was financed through the successful
offering of $14.6 million of common stock.
November 2001Entered deepwater well stimulation OSV specialty market
Entered deepwater well simulation OSV specialty market
delivery of the BJ Blue Ray, a 270
class OSV, the vessel was immediately placed into service to support well
stimulation services, primarily in the Gulf of Mexico. The BJ Blue Ray, later renamed the HOS
Ridgewind, was the first U.S. flagged OSV ever to
be given a special Well Stimulation certificate by the ABS.
April 2002Launched 3rd OSV Newbuild Program
Launched 3rd OSV Newbuild Program
response to the increasing needs of our customers operating in the deepwater
market, we launched our third OSV newbuild program comprised of four 240ED class
DP-2 new generation OSVs. Our in-house team of naval architects and engineers
improved upon previous proprietary designs to construct a more versatile
vessel, increasing deadweight capacity and adding additional service
functionalities. Vessels delivered under this program included the HOS Bluewater, HOS Gemstone, HOS Greystone,
and HOS Silverstar.
May 2002John S. Cook joins HOS
John S. Cook joins HOS
John S. Cook was appointed Senior Vice President in
May 2008. Mr. Cook was designated an executive officer and appointed a Vice
President in February 2006. Mr. Cook has also served as our Chief Information
Officer since May 2002. Before joining us, Mr. Cook held roles of increasing
responsibility in the business consulting section of Arthur Andersen LLP from
January 1992 to May 2002, ultimately serving as a Senior Manager. During his
consulting career, Mr. Cook assisted numerous marine and energy service
companies in various business process and information technology initiatives,
including strategic planning and enterprise software implementations. Mr. Cook
is a certified public accountant in Louisiana and is a member of the American
Institute of Certified Public Accountants and the Society of Louisiana
Certified Public Accountants and is a Certified Information Systems Auditor.
June 2002Changed name to Hornbeck Offshore Services, Inc.
Changed name to Hornbeck Offshore Services, Inc.
August 2002Entered international OSV market in Trinidad
Entered international OSV market in Trinidad
response to increased customer requests for equipment in non-U.S. waters, we announced
international expansion of OSV operations into Trinidad. Given the geographic
proximity of Trinidad to OSV operations in the GoM and tank barge operations in
Puerto Rico, Trinidad was a logical next step for us to penetrate new oil and
gas markets within the western hemisphere. The HOS Thunderfoot and the HOS
Cornerstone were contracted with a major oil company and commenced
operations after mobilization.
July 2003Acquired OSV vessels from Candy Fleet
Acquired OSV vessels from Candy Fleet
order to expand our service offering to clients, particularly those drilling
deep wells on the Continental Shelf, we acquired six 220 class new generation
OSVs for $54 million in cash and equity from Candy Marine Investment
Corporation, an affiliate of Candy Fleet Corporation, a privately held marine
vessel operator in the Gulf of Mexico. The six acquired vessels were renamed
the HOS Mariner, HOS Voyager, HOS
Express, HOS Explorer, HOS Pioneer, and HOS
Trader. Two of the six acquired vessels, the HOS Mariner and the HOS
Express, have since been sold.
July 2003Issued $30m private equity
Issued $30m private equity
August 2003Expanded international OSV operations in Mexico
Expanded international OSV operations in Mexico
evaluating additional opportunities to position deepwater OSVs in targeted
markets outside the U.S. GoM, we expanded international OSV operations by
securing a two year service contract with PEMEX, our first charter in Mexico.
The HOS Deepwater was mobilized to
Mexico retaining its U.S. flag status for the duration of the charter, which
would allow us to return the vessel to Jones Act Service in the GoM.
November 2003Launched 1st TTB newbuild program
Launched 1st TTB Newbuild Program
customer interest shifted from single-hulled barges to double-hulled barges, we
elected to develop and expand the existing TTB fleet based on a proprietary
design. Initially, the program consisted of a plan to build two new double-hulled
tank barges with options for up to eight and to retrofit certain existing
vessels, which addressed the phasing out of single-hulled tank barges required
by OPA ‘90. We expanded the program from two newbuild barges to five and correspondingly
purchased and retrofitted four tugs to complement the program. The vessels
ranged from 110,000 barrels to 135,000 barrels and were specifically designed
to maximize speed, storage capacities and pumping rates. Vessels delivered
under this program included the Energy
13501, Energy 13502, Energy 11103, Energy 11104, Energy 11105, Eagle Service,
Freedom Service, Liberty Service, and the Patriot Service.
December 2003Samuel A. Gilberga joins HOS
Samuel A. Gilberga joins HOS
Samuel A. Giberga was appointed Executive Vice
President in June 2011. Prior to that time, Mr. Giberga served as our Senior
Vice President beginning in February 2005. Mr. Giberga has also served as our
General Counsel since January 2004 and our Chief Compliance Officer since June
2011. Prior to joining us, Mr. Giberga was engaged in the private practice of
law for fourteen years. Mr. Giberga was a partner in the New Orleans based law
firm of Correro, Fishman, Haygood, Phelps, Walmsley & Casteix from February
2000 to December 2003 and served as a partner at Rice, Fowler, Kingsmill, Vance
& Flint, LLP from March 1996 to February 2000. During his legal career, Mr.
Giberga has worked extensively with marine and energy service companies in a
variety of contexts with a significant concentration in general business,
international and intellectual property matters. He was also a co-founder of
Maritime Claims Americas, L.L.C., which operates a network of correspondent
offices for marine protection and indemnity associations throughout Latin
America. From June 2005 through February 2007, Mr. Giberga served as a director
of the American Steamship Owners Mutual Protection and Indemnity Association
Inc. (the American Club), a mutual protection and indemnity association in
which the Company’s principal operating subsidiaries were then entered as
members. Mr. Giberga also served as an adjunct professor in intellectual
property law matters at Loyola University Law School in New Orleans.
March 2004Completed a $78m initial public offering on NYSE
Completed a $78m initial public offering on NYSE
25, 2004, HOS became a publicly traded company by successfully completing an
initial public offering of six million shares of common stock at an issuance
price $13 per share, resulting in total gross proceeds of $78 million. Subsequently and as part of the terms and
provisions of our underwriting agreement, we issued an additional 126,400
shares of common stock to our underwriters which resulted in gross proceeds of
$1.6 million. The proceeds of the offering were primarily used to pay off the
balance of our revolving credit agreement.
June 2004Added to Russell 2000 Index
Added to Russell 2000 Index
August 2004Upgraded to BB by S&P
Upgraded to BB by S&P
November 2004Upgraded to Ba3 by Moody's
Upgraded to Ba3 by Moody’s
November 2004Issued $225m in senior notes
Issued $225m in senior notes
November 2004, we issued $225 million in senior unsecured notes due 2014 with a
coupon 6.125% and spread to treasury of 198 bps, a record in the history of oil
service “high yield” transactions. The
majority of proceeds were used to repurchase our outstanding 10.625% senior
notes due 2008.
January 2005Acquired two new generation 240 class AHTS vessels from a private owner
Acquired two new generation 240 class AHTS vessels from a private owner
HOS Saylor and later the HOS Navegante, two foreign-flagged
sister vessels with anchor- handling capabilities, were acquired for $25
million and marketed as supply vessels and for towing jack-up rigs.
May 2005Launched MPSV program
Launched MPSV program
MPSV program initially consisted of the conversion and retrofit of two
coastwise sulfur tankers into U.S.-flagged, new generation 370-foot
multi-purpose supply vessels (MPSVs). The HOS 370 was the
culmination of a three-year effort by our in-house engineering team to design a
multi-purpose supply vessel to meet the expressed demand for a larger, more
versatile, DP-2 vessel capable of meeting the evolving needs of the
exploration, development and production life-cycle of an ultra-deepwater field
from ‘cradle-to-grave.’ In addition to traditional offshore supply vessel
capabilities, the HOS 370 was designed to support offshore construction, subsea
well intervention, ROV operations, pipeline commissioning, pipe-hauling and
flotel services. The MPSVs delivered under this program included the HOS Centerline and HOS Strongline, the two largest, most flexible DP-2 class offshore
vessels in the world today.
August 2005Hurricane Katrina hits the Gulf Coast
Hurricane Katrina hits the Gulf Coast
September 2005Hurricane Rita hits the Gulf Coast
Hurricane Rita hits the Gulf Coast
September 2005Launched 2nd TTB Newbuild Program
Launched 2nd TTB Newbuild Program
September 2005Launched 4th OSV Newbuild Program
Launched 4th OSV Newbuild Program
Company’s fourth OSV newbuild program consisted of vessel construction
contracts with three domestic shipyards to build sixteen DP-2 vessels. Originally, we contracted to construct four
240EDF class vessels, which was an adaptation of our proprietary 240ED design
with modifications that allow for faster transit speeds. This design was later enhanced
to extend the length of the vessel to 250 feet and named our 250EDF class. The program was ultimately expanded to
include nine 250EDF vessels, six 240ED vessels and added a one 290 class vessel,
the HOS Coral, a newbuild contract
inherited with the acquisition of the Sea Mar fleet in August of 2007. The six 240ED class OSVs delivered under this
program included the HOS Polestar, HOS Shooting Star, HOS North Star, HOS Lodestar,
HOS Silver Arrow and the HOS Sweet Water. The nine 250EDF class
OSVs delivered under this program included the HOS Arrowhead, HOS Black
Powder, HOS Eagleview, HOS Mystique, HOS Pinnacle, HOS Resolution,
HOS Westwind, HOS WIldwing, and HOS Windancer. The 290 class OSV
delivered was the HOS Coral.
October 2005$216m follow-on public equity offering + $75m "tack-on" of senior notes
$216m follow-on public equity offering + $75m “tack-on” of senior notes
In October 2005, we
completed a follow-on equity offering of 6,100,000 shares of common stock at a
price of $35.35 per share for total gross proceeds of approximately $216
million before underwriting discounts, commissions and offering expenses. Concurrently,
we issued an additional $75 million of our 6.125% senior notes due 2014. The
proceeds from both transactions were used to fund the construction of vessels for
our three on-going newbuild programs.
December 2005Entered deepwater well test market with TTB assets
Entered deepwater well test market with TTB assets
Company levered our expertise and experience in the OSV segment to access a new
market for our double-hulled tank barges by using them to perform production
well test services for OSV customers in the deepwater Gulf of Mexico.
December 2005Acquired HOS Port from ASCO
Acquired HOS Port from ASCO
February 2006Awarded military support service contracts for four OSVs
Awarded military support service contracts for four OSVs
August 2006First marine company to grant RSUs to mariners
First marine company to grant RSUs to mariners
November 2006$250m convertible senior notes +$63m stock buy-back
$250m convertible senior notes + $63m stock buy-back
November 13, 2006, we issued $250 million in senior convertible notes with an
initial coupon of 1.625% per year due 2026 for net proceeds of $242.8 million. To
limit the exposure of HOS stockholders in the event of future conversion of the
notes, a small share of the proceeds was used to fund a convertible note hedge
transaction. In addition, we used $63 million of the net proceeds to repurchase
1.8 million shares of common stock.
May 2007Expanded MPSV program with 1st DP-3 vessel
Expanded MPSV program with 1st DP-3 vessel
May 2007, we expanded our MPSV program to include one 430-ft. new generation
DP-3 MPSV,the HOS Iron Horse, to be constructed at a European shipyard. The
vessel was developed to meet the specific demands of our deepwater exploration
and production customers and designed to support inspection, maintenance,
repair, diving and construction activities. The 8,000 dwt vessel is equipped
with two cranes, a helideck, and a moon pool with accommodations for 100 people.
June 2007Acquired work-class ROVs to expand subsea service-offering
Acquired work-class ROVs to expand subsea service-offering
August 2007Acquired Sea Mar Fleet of OSVs from Nabors
Acquired Sea Mar Fleet of OSVs from Nabors
Sea Mar Fleet acquisition was our second acquisition of a significant fleet of
domestic new generation OSVs. The Sea Mar Fleet was acquired from affiliates of
Nabors Industries Ltd. (NYSE: NBR) (“Nabors”) for $186.0 million and was comprised
new generation OSVs and ten conventional OSVs. The ten new-gen boats, which are referred to as
Super 200’s, are DP-1 vessels comparable to HOS proprietary 200 class OSVs in
terms of liquid mud capacity and deck space, but with much larger deadweight
capacity. These vessels included the HOS
Davis, HOS Douglas, HOS Hawke, HOS Hope, HOS Nome, HOS North, HOS St. James, HOS St. John,
HOS Beaufort and HOS Byrd. Six of
these vessels have subsequently been stretched and upgraded to 240 class DP-2
vessels and were renamed the HOS Boudin,
HOS Beignet, HOS Coquille, HOS Cayenne, HOS Bourre, and HOS Chicory. We also agreed to purchase one 285-foot DP-2 new
generation OSV under construction at a domestic shipyard, later named the HOS Coral which was added to OSV
Newbuild Program #4. We have since sold nine of the ten conventional OSVs
included in this acquisition.
January 2008Acquired HOS Port Annex from Rowan
Acquired HOS Port Annex from Rowan
January 2008, we purchased a leasehold interest in a parcel of improvement
estate (formerly known as “Rowan Base”) adjacent to HOS Port. The purpose of
the acquisition was to support our rapidly expanding operations in the Gulf of
Mexico’s largest deepwater offshore port and provide more lay-down area in
support of our growing MPSV program. The
combined acreage of the two adjoining properties is approximately 60 acres,
more than double the original size of HOS Port.
The acquired facility also increased our shore-base lifting capacity by
two cranes, and extended our waterfront bulkhead by over 1,000 additional
linear feet to nearly 3,000 total linear feet.
January 2008Expanded MPSV program by acquiring MPSV under construction
Expanded MPSV program by acquiring MPSV under construction from Superior Offshore
further expanded our MPSV program to four vessels by acquiring a T-22 class DP-3 new generation multi-purpose
support vessel (“MPSV”) under construction at Merwede Shipyard in Holland from Superior
Energy, later renamed the HOS Achiever.
February 2008Increased revolver to $250m
Increased revolver to $250m
August 2009Issued $250m senior notes
Issued $250m senior notes
November 2011Announced OSV Newbuild Program #5
Announced OSV Newbuild Program #5
Newbuild Program #5 was originally comprised of sixteen U.S.-flagged 300 class
DP-2 new generation offshore supply vessels (“OSV”) for our Upstream business
segment with options to build an additional 48 substantially similar vessels. We
separately contracted with VT Halter Marine, Inc. of Pascagoula, Mississippi
and Eastern Shipbuilding Group, Inc. of Panama City, Florida for the
construction of eight 300 class vessels at each yard for a total project cost
of approximately $720 million. The eight OSVs constructed by Eastern
Shipbuilding Group consisted of four vessels based on the HOSMAX 300 design and
four based on the HOSMAX 310 design. The eight vessels constructed by VT Halter
Marine are based on the HOSMAX 320 design. The new HOSMAX vessels are particularly
well-suited for the increased demands of deepwater and ultra-deepwater
customers for high-specification vessels by offering double the deadweight tons
and more than double the liquid mud capacity of a typical 240 class OSV.
November 2011$242m follow-on equity offering
$242m follow-on equity offering
conjunction with the announcement of OSV Newbuild Program #5, we closed an underwritten follow-on equity offering of
8,050,000 shares of our common stock at a price to the public of $30.00 per
share, for total gross proceeds of approximately $241.5 million before
underwriting discounts, commissions and offering expenses. The
intended use of net proceeds was to partially fund OSV Newbuild Program #5 in
addition to funding any possible acquisitions or additional new vessel
March 2012Issued $375m senior notes
Issued $375m senior notes
March 2012, we issued $375 million in 5.875% senior unsecured notes due 2020
for net proceeds of $367.4 million. The proceeds were used to repurchase our
6.125% senior notes due 2014.
August 2012Issued $300m convertible senior notes
Issued $300m convertible senior notes
August 13, 2012 we issued $300 million senior convertible notes due 2019 with a
coupon of 1.500% per year for net proceeds of $290.8 million after discounts,
commission, and expenses. The proceeds were used to retire our 1.625% senior
convertible notes due 2026.
September 2012Expanded OSV Newbuild Program #5
Expanded OSV Newbuild Program #5
response to the improving outlook for our core markets, we exercised the first
four of our 48 options to build additional HOSMAX vessels consisting of two
additional HOSMAX 310 class OSVs and two additional HOSMAX 320 class OSVs.
September 2012Commenced 200 Class OSV Retrofit Program
Commenced 200 Class OSV Retrofit Program
response to evolving market demands for larger high-spec equipment, we announced
program to upgrade and stretch six of our 200 class DP-1 new generation OSVs,
converting them into 240 class DP-2 OSVs.
The vessels committed to this program were six Super 200 class DP-1
vessels originally acquired as part of the “Sea Mar Fleet”, the HOS North, HOS Davis, HOS Byrd, HOS Hope,
HOS St. John, and HOS St. James. Due
to their 56-foot wide beams, the 40-foot mid-body extensions added
approximately 600 tons to the vessels’ previous 2,250 tons of deadweight
capacity and roughly doubled the vessels’ previous liquid mud capacity to
approximately 8,000 barrels. The vessels were redelivered and renamed the HOS Beignet, HOS Boudin, HOS Bourre, HOS
Cayenne, HOS Chicory, and HOS Coquille,
February 2013Expanded OSV Newbuild Program #5 to include four 300 Class DP-2 MPSVs
Expanded OSV Newbuild Program #5 to include four 300 Class DP-2 MPSVs
to the expectation of a significant increase in domestic subsea
construction and IRM-related market demand for U.S.-flagged MPSVs and as part of the strategy to continue to
diversify the HOSMAX Newbuild Program, we contracted for the construction of
four Jones Act-qualified 310 class DP-2 MPSVs based on the HOSMAX 310 design.
These four HOSMAX vessels will have a 250T AHC KB crane, helideck, and two ROV
docking stations and are contracted with Eastern Shipbuilding Group, Inc. and
March 2013Issued $450m senior notes
Issued $450m senior notes
March 2013, we issued $450 million in 5.000% senior unsecured notes due 2021
for net proceeds of $442.4 million. The primary use of proceeds was to repurchase
our outstanding 8.000% notes due 2017.
August 2013Sold active Downstream segment to Genesis Marine
Sold active Downstream segment to Genesis Marine
to the substantial pending growth of our upstream fleet as a result of our
newbuild and retrofit programs, the Company sold substantially all of the
assets and business of the Downstream segment to Genesis Marine, LLC
(“Genesis”), an affiliate of Genesis Energy L.P. (NYSE:GEL), for cash
consideration of $230 million. We received approximately $224 million in
proceeds, net of expenses and estimated cash taxes, from this transaction. The Downstream
vessels sold to Genesis were our active fleet of nine ocean-going tugs and nine
double-hulled tank barges. In connection
with the closing, HOS and Genesis entered into transition service agreements in
order to ensure a smooth transition of operations and services for both employees
November 2013Completed Conversion and Redemption of 1.625% Convertible Senior Notes due 2026
Completed Conversion and Redemption of 1.625% Convertible Senior Notes due 2026
October 2014Announced authorization of $150 million share repurchase program.
Announced authorization of $150 million share repurchase program
October 29, 2014, we announced that the Company’s Board of Directors authorized a
share repurchase program of up to $150 million in shares of our common stock. The repurchase
program will be funded from cash on-hand, cash flow from operations and/or cash
proceeds from the divestiture of non-core assets. The timing and amount
of the repurchases will depend on several factors, such as market conditions, applicable legal requirements, available
liquidity, the discretion of management and other appropriate factors.
October 2014Announced the conversion of one 300 class OSV, the HOS Riverbend, into a 300 class...Read more
Announced the conversion of one 300 class OSV, the HOS Riverbend, into a 300 class MPSV flotel.
October 2014, The HOS Riverbend, a
300 class OSV previously placed into service under OSV Newbuild #5, began
conversion into a 300 class MPSV flotel. Upon redelivery in April 2015, the HOS Riverbend will be the first Jones
Act qualified flotel MPSV in the U.S. Gulf of Mexico. The conversion will
include a 35-ton knuckle boom crane, a motion-compensated gangway for “walk to
work” capabilities and berthing for 194 personnel.
December 2014The first HOSMAX MPSV, the HOS Bayou, was delivered and placed into service.
The first HOSMAX MPSV, the HOS Bayou, was delivered and placed into service
December 2014, the HOS Bayou was delivered as the first U.S.-flagged Jones
Act-compliant MPSV under our fifth OSV newbuild program. Equipped with two
Schilling HD 150 HP work-class remotely operated vehicles (ROVs), a 150 ton
knuckle-boom crane and a helideck, the HOS Bayou is capable of
performing inspection, maintenance and repair (IMR) of subsea oil installations
and construction support in the Gulf of Mexico (GoM). In addition to IMR work,
this vessel package is designed to perform a variety of deep-water services,
such as SURF installation, decommissioning activities, drilling support and
deep-water well intervention projects.
March 2015Completed sale of three 250EDF class vessels to the U.S. Navy with an option...Read more
Completed sale of three 250EDF class vessels to the U.S. Navy with option for fourth vessel.
March 2, 2015, the Company announced that we completed the sale of three 250EDF
class vessels, the HOS Arrowhead, the
HOS Eagleview and the HOS Westwind, to the U.S. Navy for cash
consideration of $114 million. Since their construction in 2008 and 2009, these
vessels have supported the U.S. Navy submarine fleet on both the East and West
Coast and, in order to continue to receive the benefit of these vessels,
Congress required their purchase from the Company. The purchase agreement
includes an option for the acquisition of a fourth vessel, the HOS Black Powder, that, if exercised as
anticipated, would bring the aggregate sale amount to $152 million. In addition
to these vessel sales, we entered into an operations and maintenance contract
which contains an initial term as well as annual renewal options spanning a
10-year operating period. The HOS Black
Powder was awarded a time charter that will remain in effect until the
anticipated sale of the vessel, at which time the vessel will operate under the
same terms and conditions of the operations and maintenance contract of the
three other vessels.
August 2015Completed sale of fourth 250EDF class vessel to the U.S. Navy.
Completed sale of fourth 250EDF class vessel to the US Navy
On August 28, 2015, the Company completed the sale of the fourth and final 250EDF class vessel, the HOS Black Powder, to the U.S. Navy for cash consideration of $38 million. The aggregate sale amount for all four vessels was $152 million. The Company continues to work under an operations and maintenance ("O&M") contract which contains renewal options for a 10 year operating period.
December 2015Brazilian Flagged the HOS Brass Ring, a HOSMAX 310 class OSV Newbuild.
Brazilian Flagged the HOS Brass Ring, a HOSMAX 310 class OSV Newbuild
In December 2015, the Company delivered the HOS Brass Ring, one of our HOSMAX 310 class OSV newbuilds, into Brazilian registry. The vessel was then successively Brazilian flagged and will now enjoy the benefits of the country’s strict cabotage laws while operating as one of the newest and largest ultra-high spec OSVs in the Brazilian market.
January 2016Delivered Last OSV under Newbuild Program #5
Delivered Last OSV under Newbuild Program #5
In January of 2016, the HOS Briarwood, the final HOSMAX 310 class OSV, was placed into service. The Company has now delivered all of the HOSMAX OSVs constructed under our fifth OSV newbuild program, which includes 18 Jones Act-qualified 300 class DP-2 high spec OSVs.
February 2016Company announced plans to modify and enhance capabilities of four remaining 310...Read more
Company announced plans to modify and enhance capabilities of four remaining 310 class MPSV newbuild
In February 2016, the Company announced plans to modify and enhance the capabilities of the four remaining 310 class MPSV newbuilds. The modifications to the first two MPSVs will increase the berthing capacity, expand the cargo-carrying capabilities and expand the work area for ROVs. The modifications to the other two MPSVs will include the addition of a 60-foot mid-body plug, installation of an additional crane, increased berthing capacity, expanded cargo-carrying capacities and expanded work areas for ROVs. These latter two MPSVs have been upgraded to a 400 class designation.
August 2016Delivered First 310ES MPSV under Newbuild Program #5
Delivered First 310ES MPSV under Newbuild Program #5
In August 2016, the HOS Warland, the first HOSMAX 310ES class MPSV, was placed into service. The U.S.-flagged Jones Act-compliant vessel has an 85-person berthing capacity and features a 250 ton knuckle-boom crane, an ROV control room and workshop and a helideck. The HOS Warland is DP-2 capable and is equipped with two Schilling HD 150 HP work-class remotely operated vehicles (ROVs). The Company has three remaining HOSMAX MPSVs to deliver under our fifth OSV newbuild program.
September 2016Delivered Second 310ES MPSV under Newbuild Program #5
Delivered Second 310ES MPSV under Newbuild Program #5
In September 2016, the HOS Woodland was delivered as the second and final U.S.-flagged Jones Act-compliant HOSMAX 310ES class MPSV under our fifth OSV newbuild program. Equipped with two Schilling HD 150 HP work-class remotely operated vehicles (ROVs), a 250 ton knuckle-boom crane, a helideck and an ROV control room and workshop, the HOS Woodland is DP-2 capable and has an 85-person berthing capacity. The Company has two remaining HOSMAX 400ES Class MPSVs to deliver under our fifth OSV newbuild program.
June 2017Hornbeck Offshore Announces New Credit Facility
Hornbeck Offshore Announces New Credit Facility
On June 15, 2017 we announced the refinancing of our existing $200 million senior secured revolving credit facility (the “Old Credit Facility”) with a new first-lien delayed-draw credit facility providing for up to $300 million of term loans (the “New Credit Facility”). The New Credit Facility’s six-year term extends the maturity to June 2023 and provides us financial flexibility by eliminating financial ratio maintenance covenants and the anti-cash hoarding provision of the Old Credit Facility. The New Credit Facility may be used for working capital and general corporate purposes, including the acquisition of distressed assets and/or the refinancing of existing debt, subject to compliance with certain minimum liquidity requirements, among other things. We limited the call protection to the first two years and also have the option of paying interest on the New Credit Facility “in-kind” (PIK Interest), subject to a 100 basis-point step-up in interest rate and a minimum 3% cash-pay coupon for so long as we elect to pay PIK Interest. The full text of the First Lien Term Loan Agreement is included as an exhibit on our Form 8-K filed June 15, 2017.
May 2018On May 18, 2018, we completed the acquisition of four high-spec OSVs from Aries...Read more
Acquired Four High Spec OSVs from Aries Marine
February 2019On February 7, 2019, we closed on a private exchange offer of $131.6 million of our...Read more
Completed Exchange Offer of 5.875% senior notes due 2020
February 7, 2019, we closed on a private exchange offer of $131.6 million of
our 5.875% senior notes due 2020 that were tendered in exchange for $111.9
million in second-lien term loans due 2025.
The second-lien term loans are collateralized by a second-priority
security interest in 48 domestic high-spec OSVs and MPSVs (including two
pending MPSV newbuilds) and seven foreign high-spec OSVs, and associated
personalty, as well as by certain deposit and securities accounts. Borrowings
under the second-lien term loans accrue interest at a fixed rate of 9.50% per
annum. The second-lien term loans may be prepaid (i) at 100% of the principal
amount repaid if such repayment occurs on or prior to August 7, 2019; (ii) at
101% of the principal amount repaid if such repayment occurs after August 7,
2019 but on or prior to August 7, 2020 and (iii) at 100% of the principal
amount repaid if such repayment occurs after August 7, 2020.
July 2019On June 28, 2019 we entered into a new $100 million senior secured asset-based...Read more
Hornbeck Offshore Announces New Senior Credit Facility
June 28, 2019 we entered into a new $100 million senior secured asset-based
revolving credit facility (the “Senior Credit Facility”). The fully-funded
Senior Credit Facility was secured by first priority liens on certain eligible
receivables, certain restricted cash amounts and related assets. The Senior Credit Facility enhanced the
Company’s financial flexibility and was comprised of two tranches that
rebalanced each month based on the variable eligible receivables-backed
borrowing base. The unrestricted receivables-backed tranche has a maturity in
2022, and the restricted cash-backed tranche had a maturity in 2025. The
receivables-backed tranche could be used for working capital and general
corporate purposes, including the repayment or refinancing of existing debt,
subject to, among other things, compliance with certain requirements. The
cash-backed tranche could, over time, rebalance to the receivables-backed
tranche as eligible receivables increase and may be refinanced over time. Loans under the Senior Credit Facility accrued
interest at LIBOR plus a floating-rate spread of 5.00% for the life of the
May 2020Effective April 13, 2020, we and certain of our subsidiaries entered into a...Read more
Filed a Joint Prepackaged Chapter 11 Plan of Reorganization
April 13, 2020, we and certain of our subsidiaries entered into a Restructuring
Support Agreement (the “RSA”) with secured lenders holding approximately 83% of
our aggregate secured indebtedness and unsecured noteholders holding
approximately 79% of our aggregate unsecured notes outstanding. On May 19,
2020, the Company sought voluntary relief under chapter 11 of the United States
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of
Texas, Houston Division and filed a proposed joint prepackaged plan of
reorganization (the “Plan”). Pursuant to
the RSA, on May 13, 2020 we commenced the solicitation of votes on the Plan
(the “Solicitation”). In connection with commencement of the Solicitation,
copies of the Plan and the disclosure statement related thereto were
distributed to certain creditors of the Company entitled to vote on the Plan. The
Company had access to a $75 million debtor-in-possession term loan facility
provided by existing creditors and permitted use of existing cash on hand and
cash generated from operations to support the business during the financial
restructuring process, which enabled the Company to operate in the ordinary
course of business without disruption to our customers, vendors and
workforce. The Plan provided for payment
in full of all vendors and employees.
June 2020On June 26, 2020, we announced that the Company’s Joint Prepackaged Chapter 11 Plan...Read more
Company’s Joint Prepackaged Chapter 11 Plan of Reorganization Approved
26, 2020, we announced that the Company’s Joint Prepackaged Chapter 11 Plan of
Reorganization (the “Plan”) was approved by Judge David R. Jones of the United
States District Court for the Southern District of Texas. The confirmed Plan achieved the overwhelming
support of 100% of voting Class 4 First Lien Claims in amount, 99.9% of voting
Class 5 Second Lien Claims in amount, and 99.8% of voting Class 6 Unsecured
Notes Claims in amount. The Company
expected to emerge from bankruptcy upon clearing various governmental approvals,
which were expected to occur within the coming few months. The Company received
subscriptions for a $100 million rights offering with respect to the planned
issuance of shares of new equity, which will resulted in a $100 million
increase in liquidity and was expected to close on the Plan’s effective
date. In addition, the Plan contemplated
a post-emergence first-lien senior secured term loan credit facility and
second-lien senior secured term loan credit facility, each in an aggregate
principal amount to be determined.
September 2020On September 4, 2020 (the “Effective Date”) we emerged from Chapter 11 pursuant...Read more
Completed Reorganization and Emerged from Chapter 11
September 4, 2020 (the “Effective Date”) we
emerged from Chapter 11 pursuant to our Joint Prepackaged Chapter 11 Plan of
Reorganization (the “Plan”). The Plan implemented the previously announced
Restructuring Support Agreement negotiated with the Company’s lenders and note
holders. Pursuant to the Plan, all
general unsecured creditors, including the Company’s trade creditors and
vendors, were paid in full in the ordinary course of business; the Company’s
debtor-in-possession financing was converted into a new senior secured exit
facility; all of the Company’s pre-petition secured loans and unsecured senior
notes were cancelled in exchange for new secured debt, new equity, and new
equity rights (or cash, if applicable) as of the Effective Date; and all of the
Company’s pre-petition equity interests were extinguished as of the Effective
Date. In addition, the Company closed on
the common stock rights offering contemplated by the Plan, which resulted in a
$100 million cash infusion of new equity capital led by the Special
Opportunities Funds of Ares Management, as well as funds managed by Whitebox
Advisors and Highbridge Capital Management.
The Company emerged as a privately-held entity with a strengthened financial
foundation and a new Board of Directors focused on future success.
January 2022On January 11, 2022, we entered into definitive vessel purchase agreements with...Read more
Announced the acquisition of ten high-spec OSVs from certain affiliates of Edison Chouest Offshore
11, 2022, we
entered into definitive
vessel purchase agreements with certain affiliates of Edison Chouest Offshore
(the “Sellers”) to acquire a total of ten high-spec new generation offshore
supply vessels (“OSVs”) for an undisclosed amount of cash. Eight of the vessels are U.S.-flagged, Jones
Act-qualified, 280 class DP-2 OSVs with capacities of circa 4,750 DWT. The other two vessels are Mexican-flagged 240
class DP-2 OSVs with capacities of circa 3,200 DWT. Upon completion of regulatory drydockings to
be conducted by the Sellers, the Company expected to take serial deliveries of
all ten vessels over the next 12 to 15 months, with the first vessel expected
to be delivered within the next 90 days.
February 2022On February 7, 2022, we entered the acquisition of three high-spec new generation...Read more
Acquisition of three high-spec OSVs at auction from the United State Maritime Administration
7, 2022, we entered the acquisition of
three high-spec new generation offshore supply vessels (“OSVs”) from the U.S.
Department of Transportation’s Maritime Administration (“MARAD”) for an undisclosed
amount of cash. All three of the vessels
that were acquired at auction are U.S.-flagged, Jones Act-qualified, 280 class
DP-2 OSVs with capacities of circa 4,600 DWT. Upon taking physical delivery of
the vessels from MARAD, we expect to conduct reactivation and regulatory
drydockings of all three vessels. Built
by Eastern Shipbuilding in 2013 and 2014 to a design specification and with
components that are very compatible with our other ‘Tiger Shark Class’ vessels,
these particular ships are excellent candidates for deployment in the growing
U.S. domestic offshore wind industry, as well as for potential conversion to
military or other non-oilfield, non-wind specialty applications.