Helix Energy Solutions Group entered into an amended and restated credit agreement with a syndicated bank lending group in the amount of $250 million, consisting of a $150 million revolving credit facility and a $100 million term loan.
Bank of America Merrill Lynch 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 proceeds from the term loan as well as cash on hand were used to repay the approximately $180 million outstanding term loan prior to its amendment and restatement.
The key features of the amended and restated credit facility include:
- Three-year term
- $100 million term loan with amortization payments of 5% in year one, 10% in year two and 15% in year three with a balloon payment at maturity
- $150 million revolving credit facility
- Initial pricing at the base rate plus 325 basis points or LIBOR plus 425 basis points, with an undrawn fee of 50 basis points
- $100 million accordion feature
Erik Staffeldt, senior vice president and CFO of Helix, commented: “Extending the maturity of our term loan from 2018 to 2020 provides the company with greater financial flexibility for the completion of our capital expansion program in 2018. In addition, as part of this transaction we reduced our gross debt by approximately $80 million to $544 million.”
Helix Energy Solutions Group, headquartered in Houston, is an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations.