Tidewater Raise Funds on Senior Note Placement

Offshore Service Vessel owner Tidewater Inc. with a group of institutional investors have executed a $500-million senior unsecured note purchase agreement.

Proceeds from the issuance of the notes will be used to (i) refinance borrowings under the company’s existing $600 million revolving credit facility, which remains available until June 2018, (ii) fund capital expenditures related to the company’s on-going fleet enhancement program and (iii) for general corporate purposes.

The note purchase agreement contemplates two closings at which time the company expects to issue multiple series of notes. The first closing was September 30, 2013 whereby the company issued $300 million of senior unsecured notes and the second closing is expected on November 15, 2013 when the company will issue the remaining $200 million of senior unsecured notes.

When issued, the notes will have maturities ranging from 7 years to 12 years and have a weighted average life to maturity of approximately 9¾ years. The notes may be retired before their respective scheduled maturity dates subject only to a make-whole provision. The weighted average coupon on the notes is 4.86%.