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Hornbeck Offshore Services, Inc. ( OTCMKTS: HOSS) Heats Up Fast


Hornbeck Offshore Services, Inc. ( OTCMKTS: HOSS) has seen a fast move up in recent days since briefly dipping below a dime. The move up on HOSS represents a welcome change for Investors as the stock has been on a straight line drop since it topped $6 per share back in October 2018.

HOSS hit lows of $0.0857 earlier this year and has transformed since then into a fast runner and volume leader in small capps recently topping $0.45 per share.

Hornbeck Offshore Services, Inc. ( OTCMKTS: HOSS) through its subsidiaries, operates offshore supply vessels (OSVs), multi-purpose support vessels, and a shore-base to provide logistics support and specialty services to the offshore oil and gas exploration and production industry. It operates in two segments, Upstream and Downstream.

The Company owns and operates fleets of the U.S.-flagged, new generation OSVs, which support deepwater and ultra-deepwater exploration, development, production, construction, installation, maintenance, repair, and enhanced oil recovery requirements of the oil and gas industry primarily in the U.S. Gulf of Mexico, as well as in the international markets. This segment also owns conventional OSVs, work class ROVs and a shore-base facility located in Port Fourchon, Louisiana. In addition, the segment provides vessel management services for other vessels owners, which comprise crewing, daily operational management and maintenance activities.

HOSS also owns and operates a fleet of ocean-going tugs and tank barges that transport petroleum products, primarily in the northeastern United States, the Gulf of Mexico, the Great Lakes, and Puerto Rico. These tugs and tank barges provide coastwise transportation of refined and bunker grade petroleum products, as well as offer other services, including the support of deepwater well testing and other applications for refining, marketing, and trading companies. As of December 31, 2008, Hornbeck Offshore Services owned and operated a fleet of 39 new generation OSVs and 6 conventional OSVs, and 17 ocean-going tugs. The company was founded in 1997 and is headquartered in Covington, Louisiana.

On February 14 HOSS released an 8k stating – On February 14, 2020, Hornbeck Offshore Services, Inc. entered into a support agreement with certain holders of the Company’s outstanding 5.875% Senior Notes due 2020 and 5.000% Senior Notes due 2021. In connection with the entry into the Transaction Support Agreement, the Company commenced offers to exchange up to all of the Existing Notes for a combination of its newly issued 10.000% Senior Notes due 2023 and 5.500% Senior Notes due 2025 (together with the 2023 Senior Notes, the private offer to purchase for cash up to $66.7 million in aggregate principal amount of Existing Notes upon the terms and conditions set forth in a confidential offer to exchange and consent solicitation statement dated February 14, 2020, as well as a solicitation of consents to proposed amendments with respect to the indentures governing the Existing Notes and certain releases.

Pursuant to the Transaction Support Agreement, the Supporting Holders have agreed to, among other things: (i) validly tender in the Offers, approximately 80% of the $224.3 million aggregate principal amount of outstanding 2020 Notes and 89% of the $450.0 million aggregate principal amount of outstanding 2021 Senior Notes; (ii) deliver the Consents and associated releases with respect to such Existing Notes; (iii) not to withdraw or revoke any Existing Notes tendered and any Consents and releases delivered in the Offers and Consent Solicitations; and (iv) cooperate with and support the Company’s efforts to consummate the Offers and Consent Solicitations.

The Company’s and the Supporting Holders’ obligations under the Transaction Support Agreement are subject to various customary conditions set forth in the Transaction Support Agreement.

The foregoing description of the Transaction Support Agreement does not purport to be complete and is qualified in its entirety by reference to the form of the Transaction Support Agreement, which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated by reference herein.

Currently moving up fast HOSS has big numbers behind it according to their latest filing. HOSS is an exciting story in small caps – the stock got a boost after the Company announced t has reached an agreement with certain holders of the Company’s outstanding 5.875% Senior Notes due 2020 and 5.000% Senior Notes due 2021. We will be updating on HOSS on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with HOSS.

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Disclosure: we hold no position in HOSS either long or short and we have not been compensated for this article.


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