Offshore service vessel provider Hornbeck Offshore Services, Inc. (NYSE:HOS) has seen its shares get pummeled over the last four months, pounded to an all-time low ($1.51) at the start of the month as investors fretted over its financial condition. Traders were selling as the Covington, Louisiana-based company couldn't successfully complete negotiations with bondholders.
Interestingly, we wrote on Tuesday on a bounce in shares of rival Tidewater (NYSE:TDW) as it topped revenue expectations in the recent quarter. Tidewater recently filed for Chapter 11 bankruptcy protection and restructured some of its debt.
It looked like HOS could be heading down the same path as it stared down over $1 billion in long-term debt, even though it has about $400 million at its disposal between cash on hand and untapped, yet complicated credit facility.
Shares are the best performer on the NYSE on Friday thanks to Hornbeck refinancing its existing $200 million senior secured revolving credit facility with a new first-lien delayed-draw credit facility providing for up to $300 million of term loans.
The six-year term of the New Credit Facility extends the maturity of the Old Credit Facility from February 2020 to June 2023 and comes with a host of benefits compared to the old facility. Namely, the new deal doesn't have financial covenants aside from a minimum liquidity requirement of $25 million. Furthermore - and amongst other things - the new facility allows for refinancing HOS's existing debt.
Investors are buying up shares, pushing HOS stock to $2.57 at 1:20 PM EDT after closing at $1.97 on Thursday, representing a gain of 30.4%. At the time of this writing, that's the best performing NYSE-listed stock. Shares have traded as high as $2.93 and as low as $2.26 so far during the trading session.
