On Sept. 27, 2005, Standard&Poor's Ratings Services affirmed the ratings on Hornbeck Offshore Services Inc. following its announced common stock offering and $75 million debt placement. In addition, the $75 million additional 6.125% senior notes due 2014, were rated 'BB-'. The outlook is stable. Pro forma the offerings, Covington, La.-based Hornbeck will have $300 million of debt. Proceeds from the $4.8 million common share offering, roughly $163 million based on Hornbeck's Sept. 23, 2005 closing price of $34.20, and the $75 million senior notes will be used to help fund the announced new $265 million construction program, consisting of $170 million to construct 20,000 deadweight tons of new offshore supply vessels (OSVs), and $95 million for 400,000 barrels
