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Helix Announces $80 Million Asset-Based Credit Facility
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Rhea-AI Summary
Helix Energy Solutions Group (NYSE: HLX) has secured an $80 million asset-based revolving credit facility to replace its existing credit facility and fully repay a term loan. The facility features a five-year term and offers $45 million for the U.S. and $35 million for the U.K. Initial borrowing is expected to be around $72 million, fluctuating between $30 million and $70 million based on seasonal activity. The financing will enhance Helix's ability to manage operations effectively during its post-capital expansion phase.
Positive
Secured $80 million ABL Facility to enhance financial flexibility.
Initial borrowing base of approximately $72 million.
Facility allows for seasonal and geographic borrowing adjustments.
Negative
None.
HOUSTON--(BUSINESS WIRE)--
Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX) announced today that it has entered into a new $80 million asset-based revolving credit facility (the “ABL Facility”) with a syndicated banking group. The ABL Facility replaces Helix's existing credit facility and term loan, which was concurrently repaid in full.
The key features of the ABL Facility include:
$80 million revolving credit facility, subject to borrowing base availability
Five-year term or 91 days prior to the maturity of Helix’s 2026 Convertible Senior Notes
Separate U.S. and U.K. tranches of $45 million and $35 million, respectively
Initial pricing at LIBOR or SONIA plus 150 to 200 basis points or the base rate plus 50 to 100 basis points, with an undrawn fee of 37.5 to 50 basis points
Additional $70 million accordion, subject to lender approval
Erik Staffeldt, Executive Vice President and Chief Financial Officer of Helix,commented, “We are pleased to have executed the new ABL Facility, which will provide us with access to working capital financing as needed during our post-capital expansion phase. We expect the facility will provide greater flexibility to manage our daily operations and financial covenant compliance requirements. Our initial borrowing base is approximately $72 million, and we expect it will fluctuate between $30 and $70 million with our seasonal and geographic changes in activity. The ABL Facility will initially be used to support our existing letters of credit, and our initial availability, net of letters of credit, is approximately $70 million with no outstanding borrowings. We are pleased to be able to continue our banking relationships with the support of our lenders.”
Bank of America, N.A. and Wells Fargo Bank, N.A. acted as Joint Lead Arrangers, and Bank of America, N.A. will continue to serve as Administrative Agent.
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, 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. For more information about Helix, please visit our website at www.HelixESG.com.
Erik Staffeldt Executive Vice President and CFO
email: estaffeldt@helixesg.com ph: 281-618-0465
Source: Helix Energy Solutions Group, Inc.
FAQ
What is the amount of the new credit facility for Helix Energy Solutions Group (HLX)?
Helix Energy Solutions Group has entered into an $80 million asset-based revolving credit facility.
What are the key features of Helix's new ABL Facility?
The ABL Facility includes a five-year term, $45 million for the U.S. and $35 million for the U.K., with initial pricing set at LIBOR or SONIA plus 150 to 200 basis points.
How much is Helix's initial borrowing base under the new credit facility?
Helix's initial borrowing base is approximately $72 million.
Why did Helix Energy Solutions Group restructure its credit facility?
The restructuring aims to provide greater flexibility for managing daily operations and financial covenant compliance requirements post-capital expansion.
Who are the joint lead arrangers for Helix's new ABL Facility?
Bank of America, N.A. and Wells Fargo Bank, N.A. acted as Joint Lead Arrangers for the new ABL Facility.
