SEC Filings

10-K
HORNBECK OFFSHORE SERVICES INC /LA filed this Form 10-K on 02/28/2018
Entire Document
 

(7) 
Included in operating leases are commitments for a shore-base port facility, office space, and office equipment. See “Item 2—Properties” for additional information regarding our leased office space and other facilities.
Debt
As of December 31, 2017, the Company had the following outstanding long-term debt (in thousands, except effective interest rate):
 
Total Debt
 
Effective Interest Rate
 
Cash Interest Payments
 
Payment Dates
5.875% senior notes due 2020, net of deferred financing costs of $2,061 (1)
$
364,881

 
6.08
%
 
$
10,779

 
April 1 and October 1
5.000% senior notes due 2021, net of deferred financing costs of $3,142 (1)
446,858

 
5.21
%
 
11,250

 
March 1 and September 1
1.500% convertible senior notes due 2019, net of original issue discount of $6,634 and deferred financing costs of $1,486
91,527

 
6.23
%
 
747

 
March 1 and September 1
First-lien credit facility due 2023, plus deferred gain of $18,911, net of original issue discount of $1,228 and deferred financing costs of $3,445 (2)
177,560

 
7.53
%
 
1,025

 
Variable
 
$
1,080,826

 
 
 
 
 
 
 
(1)
The senior notes do not require any payments of principal prior to their stated maturity dates, but pursuant to the indentures under which the 2020 and 2021 senior notes were issued, we would be required to make offers to purchase such senior notes upon the occurrence of specified events, such as certain asset sales or a change in control.
(2)
The interest rate on the first-lien credit facility is variable based on the Company's election. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was elected and in effect on December 31, 2017. Please see Note 6 for further discussion of the variable interest rate included within the first-lien credit facility.
The credit agreement governing the New Credit Facility and the indentures governing our 2020 and 2021 senior notes impose certain operating and financial restrictions on us. Such restrictions affect, and in many cases limit or prohibit, among other things, our ability to incur additional indebtedness, make capital expenditures, redeem equity, create liens, sell assets and pay dividends or make other restricted payments. For the year ended December 31, 2017, we were in compliance with all of our debt covenants. We continuously review our debt covenants and report to our first-lien lenders our compliance with all applicable covenants on a quarterly basis. We also consider such covenants in evaluating transactions that will have an effect on our financial ratios.
Capital Expenditures and Related Commitments
The following table sets forth the amounts incurred for our fifth OSV newbuild program, before construction period interest, during the year ended December 31, 2017 and since such program’s inception, as well as the estimated total project costs for such program (in millions): 
 
Year Ended December 31, 2017
 
Incurred
Since
Inception    
 
Estimated   
Program
Totals(1)
 
Actual/Projected    
Delivery
Dates(1)
Growth Capital Expenditures:
 
 
 
 
 
 
 
OSV Newbuild Program #5(2)
$
8.7

 
$
1,272.7

 
$
1,335.0

 
2Q2013-3Q2019
 
 
(1) 
Estimated Program Totals and Projected Delivery Dates are based on internal estimates and are subject to change due to delays and possible cost overruns inherent in any large construction project, including, without limitations, shortages of equipment, lack of shipyard availability, unforeseen engineering problems, work stoppages, weather interference, unanticipated cost increases, the inability to obtain necessary certifications and approvals and shortages of materials, component equipment or skilled labor. All of the above historical and budgeted capital expenditure project amounts for our newbuild program represent estimated cash outlays and do not include any allocation of capitalized construction period interest. Actual and projected delivery dates correspond to the first and last vessels that were contracted with shipyards for construction and delivery under our currently active program, respectively.
(2) 
Our fifth OSV newbuild program consists of vessel construction contracts with three domestic shipyards to build four 300 class OSVs, five 310 class OSVs, ten 320 class OSVs, three 310 class MPSVs and two 400 class MPSVs. As of February 7, 2018, we had placed 22 vessels in service under such program. The remaining two vessels under this 24-vessel domestic newbuild program are currently expected to be placed in service in the second and third quarters of 2019. Please refer to Our Vessels on page 7 of this Form 10-K for more information about vessel names and placed-in-service dates.

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