Tidewater strikes deal to sell $425 million in debt in private placement

Tidewater in deal for private sale of $425M debt

NEW ORLEANS — Tidewater has reached a deal to sell $425 million in debt, the maritime transportation company said Friday, which will allow it to refinance and pay for fleet improvements.

As part of the deal with a group of institutional investors, Tidewater will issue senior unsecured notes for $310 million on Oct. 15, and $115 million in notes in private placements on Dec. 30.

The debt will mature in five to 12 years, with an average of nine. The weighted average coupon is 4.25 percent.

Proceeds will be used to refinance borrowings under Tidewater’s $450 million revolving credit facility, which remains available until May 2012, and to fund the company’s ongoing fleet enhancement program.

Tidewater provides water vessel support for the offshore petroleum industry. It currently owns 397 vessels.

In morning trading, shares of Tidewater Inc. gained 55 cents to $41.90.