Oceaneering International Plans $500M Debt Raise

By Bobby Samwell • Wednesday, June 24 13:03 • Permanent Link

Oceaneering International said it plans to raise $500 million through a private offering of senior notes due 2034, using the proceeds to help fund a concurrent cash tender offer for its 6.000% senior notes due 2028.

The company said the new notes will be sold in a private placement to eligible purchasers. If the tender offer is fully completed, the proceeds will be used to buy back any and all of the 2028 notes that are tendered and accepted.

If the tender offer does not close, or if the new debt raises more cash than is needed for the buyback, Oceaneering said it will use the excess for general corporate purposes, including potentially repaying, redeeming or repurchasing other debt.

The 2028 notes targeted in the tender offer carry a 6.000% coupon and mature in 2028. The new notes would mature in 2034, extending the company’s debt timeline by six years. Following these announcements, the company's shares moved -2.43%, and are now trading at a price of $35.40. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.