NEW YORK (Standard&Poor's) Nov. 4, 2004--Standard&Poor's Ratings Services said today that its ratings and outlook on Hornbeck Offshore Services Inc. (BB-/Stable/--) are not affected by the company's announcement that it has tendered for its $175 million senior notes due 2009, and plans to issue about $225 million of senior notes in a private placement to fund the transaction. The transaction is considered neutral to Hornbeck's ratings, and the new senior notes will be rated 'BB-', assuming no material variations from current assumptions. Although Hornbeck's debt level will increase as a result of the transaction, Standard&Poor's expects lower interest expense and greater cash flow because of a significantly lower coupon on the proposed notes.
