Hornbeck Offshore Closes New Revolving Credit Facility

Hornbeck Offshore Services, Inc. has closed on a new five- year senior secured revolving credit facility that increased the amount of the borrowing base, extended the maturity, lowered the interest rate and improved the financial flexibility of the covenant package of the Company's prior revolving credit facility, commensurate with its enhanced credit standing. The new revolving credit facility has increased the Company's borrowing base from $60 million to $100 million, with an accordion feature that allows for the potential expansion of the facility up to $250 million in total. The new facility has also extended the maturity of the prior facility from February 2009 to September 2011.

With the new facility, the Company has the option of borrowing at a variable rate of interest equal to either (i) the greater of the Prime Rate or the Federal Funds Effective Rate plus 1/2 of 1% or (ii) the London Interbank Offered Rate, or LIBOR; plus in each case an applicable margin. The applicable margin for each base rate is determined by a pricing grid, which is based on the Company's Leverage Ratio, as defined in the Credit Agreement. The new facility has reduced the Company's applicable LIBOR margin by 100 basis points on the low-end of the pricing grid and 200 basis points on the high-end. Based on its current Leverage Ratio and the new pricing grid, the Company could borrow today at a variable interest rate of approximately 5.85%, which is 50 basis points above current LIBOR. As of September 30, 2006, the Company had no balance outstanding under the new revolving credit facility and had $100 million of credit immediately available under such facility. As of that date, eight offshore supply vessels and four ocean-going tugs and associated personalty collateralized the new facility. The new revolving credit facility is available for working capital and general corporate purposes, including acquisitions, additional newbuild and conversion programs and other capital expenditures. Wells Fargo Bank, N.A. acted as sole lead arranger, sole bookrunner and administrative agent and Comerica Bank acted as syndication agent for the new revolving credit facility. Amegy Bank N.A., Capital One, N.A., DnB NOR Bank ASA, Fortis Capital Corp. and JPMorgan Chase Bank, N.A. are the remaining lenders in the Company's expanded bank group.