Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3') - S&P Global Ratings’ Credit Research

Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3')

Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3') - S&P Global Ratings’ Credit Research
Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3')
Published Sep 21, 2023
3 pages (1544 words) — Published Sep 21, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) Sept. 21, 2023--S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to Oceaneering International Inc.'s proposed $200 million add-on to its $300 million senior notes due in 2028. We view the transaction as deleveraging pro-forma the recently announced cash tender offer of its $400 million, 4.65% senior notes due 2024, funded with a combination of the proposed note offering and $200 million of cash on hand. Assuming the tender offer is completed as expected, pro-forma leverage would likely be viewed favorably against our upgrade threshold of 45% funds from operation (FFO) to debt. We will evaluate the results of the tender offer once completed and expect to review the rating at

  
Brief Excerpt:

...September 21, 2023 NEW YORK (S&P Global Ratings) Sept. 21, 2023--S&P Global Ratings today assigned its '##-' issue-level rating and '3' recovery rating to Oceaneering International Inc.'s proposed $200 million add-on to its $300 million senior notes due in 2028. We view the transaction as deleveraging pro-forma the recently announced cash tender offer of its $400 million, 4.65% senior notes due 2024, funded with a combination of the proposed note offering and $200 million of cash on hand. Assuming the tender offer is completed as expected, pro-forma leverage would likely be viewed favorably against our upgrade threshold of 45% funds from operation (FFO) to debt. We will evaluate the results of the tender offer once completed and expect to review the rating at the close of the transaction. The cash tender offer for its $400 million, 4.65% senior notes due in 2024 will be funded by the proposed $200 million add-on debt and $200 million of cash on hand from its high cash balance of $504 million...

  
Report Type:

Ratings Action

Issuer
GICS
Oil & Gas Equipment & Services (10101020)
Sector
Global Issuers
Country
Region
Format:
PDF Adobe Acrobat
Buy Now

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3')" Sep 21, 2023. Alacra Store. Jul 19, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Oceaneering-International-Inc-s-200-Million-Senior-Notes-Add-On-Rated-BB-Recovery-Rating-3-3058808>
  
APA:
S&P Global Ratings’ Credit Research. (). Oceaneering International Inc.'s $200 Million Senior Notes Add-On Rated 'BB-' (Recovery Rating: '3') Sep 21, 2023. New York, NY: Alacra Store. Retrieved Jul 19, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Oceaneering-International-Inc-s-200-Million-Senior-Notes-Add-On-Rated-BB-Recovery-Rating-3-3058808>
  
US$ 150.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.