US offshore services companies Hornbeck Offshore Services and Helix Energy Solutions Group completed their all-stock merger on September 1, creating a combined company with more than 100 vessels spanning offshore supply, multipurpose support and well intervention operations, according to Hornbeck Offshore Services.
The combined fleet includes 58 offshore supply vessels, 15 multipurpose support vessels and seven well intervention vessels, alongside 48 robotics and trenching assets.
Legacy Hornbeck securityholders are expected to own about 55% of the combined company, with legacy Helix shareholders holding about 45% on a fully diluted basis. Each outstanding legacy Hornbeck common share was converted into the right to receive 10.27167 shares in the combined company, with cash payable instead of fractional shares.
The merged company operates under the Hornbeck Offshore Services, Inc. name. Its activities cover marine transportation and specialty services, subsea services, well intervention, defense support and autonomous marine solutions.
Todd M. Hornbeck is president and chief executive and a director, while William L. Transier is chairman of the seven-member board. Todd Hornbeck said the combination had created “a global offshore services leader”.
The companies targeted at least $75m of annual revenue and cost synergies within three years of closing when the deal was announced in April, including at least $45m of annual revenue synergies and at least $30m of cost savings.
Hornbeck increased commitments under its first-lien revolving credit facility to $125m from $75m at closing. Helix terminated a $120m asset-based credit facility with no outstanding borrowings.
The merger agreement was signed on April 22 and announced on April 23. Helix shareholders approved the proposals required to complete the transaction at a special meeting on August 31.
Hornbeck Offshore Services, Inc. is a Delaware corporation headquartered in Houston, Texas, and Covington, Louisiana. Legacy Hornbeck operated high-specification offshore service vessels, while Helix Energy Solutions Group provided well intervention, subsea robotics and technical offshore services.