Daily News: June 21, 2013

Merrill Lynch, Wells Fargo Arrange Helix Facility

Helix Energy Solutions Group entered into a credit agreement with a syndicated bank lending group in the amount of $900 million, consisting of a $600 million revolving credit facility and a $300 million term loan. The term loan will be funded in conjunction with the early redemption of the company’s remaining $275 million senior unsecured notes. The new facility replaces the company’s existing credit facility that would have expired in July 2015.

Merrill Lynch, Pierce Fenner & Smith and Wells Fargo Securities acted as joint lead arrangers and joint bookrunning managers of the new facilities. Bank of America will continue to serve as administrative agent.

The key features of the new secured credit facility include:

  • Initial pricing at LIBOR plus 275 basis points, with an undrawn fee of 50 basis points;

  • Annual amortization payments on the term loan of 5% in years one and two, and 10% per annum in years three through five with a balloon payment at maturity;

  • $200 million accordion feature; and

  • 5-year-term

    “The new credit facility along with the early redemption of our senior unsecured notes provides Helix with a lower cost of capital along with the financial support to execute our strategy of growing our well intervention and robotics businesses,” commented Anthony Tripodo, executive vice president and chief financial officer of Helix.

    Helix Energy Solutions Group, headquartered in Houston, TX, is an international offshore energy company that provides key life of field services to the energy market.