Expanded Bank News

The dirty money can and does wash ashore on the waterfront. Despite all the jokes about having a washing machine full of soapy hundred dollar bills, the U.S. Government takes money laundering very, very seriously. Anti-Money Laundering (AML) laws include substantial fines and possible prison time and places the onus for recognizing and reporting money laundering squarely on the shoulders of financial institutions. And yet, we don’t necessarily associate ‘dirty money’ with the mundane world of moving cargo or people from point ‘a’ to point ‘b.’ If so, that’s probably a mistake.

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.