Hornbeck Offshore Services, Inc. (HOS) announced the closing of its previously announced offering of $260.0 million aggregate principal amount of convertible senior notes due 2019 that were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

In addition, the Company announced that the initial purchasers exercised their option in full to purchase an additional $40.0 million in principal amount of the Convertible Notes, which also closed.

The net proceeds from this offering, including proceeds resulting from the exercise of the initial purchasers' option to purchase an additional $40.0 million in principal amount of new Convertible Notes, are approximately $290.8 million, after deducting discounts, commissions and estimated expenses. The Company used approximately $73.0 million of the combined net proceeds of the offering and proceeds from the sale of warrants referred to below to fund the cost of convertible note hedge transactions that it has entered into with counterparties that include affiliates of the initial purchasers.