Hornbeck Offshore Services Inc. (NYSE: HOS) closed the previously announced sale of substantially all of the assets and business of its downstream segment's tug and tank barge fleet to Genesis Marine LLC, an affiliate of Genesis Energy LP (NYSE: GEL), for US $230 million in cash.
The company received $224 million in proceeds, net of expenses and estimated cash taxes, from this transaction. Proceeds will be used for general corporate purposes that may include retirement of debt or funding for the acquisition, construction or retrofit of vessels.
The downstream vessels sold to Genesis comprised Hornbeck's active fleet of nine ocean-going tugs and nine double-hulled tank barges. In connection with the closing, Hornbeck and Genesis entered into transition service agreements in order to ensure a smooth transition of operations and services for both employees and customers.
J.P. Morgan Securities LLC acted as exclusive financial advisor to Hornbeck Offshore.
Hornbeck Offshore Services Inc., through its subsidiaries, provides marine transportation services to exploration and production, oilfield service, offshore construction, and the U.S. military customers. The company is headquartered in Covington, La.