Calling all investors seeking exposure to the offshore support vessel sector – a new deal is set to sail.
On Thursday, December 7, Hornbeck Offshore Services filed documentation for an initial public offering (IPO) with the Securities and Exchange Commission (SEC). It plans to list on the New York Stock Exchange under the ticker “HOS.” Hornbeck did not set a date for the deal, nor did it reveal how many shares it would offer or give a price range estimate. It has cited the placeholder sum of $100 million.
The firm provides marine transportation to various offshore operators, including oil drillers, military support services, and renewable energy companies. It plans to list on the New York Stock Exchange under the ticker “HOS.”
Hornbeck’s core operating region is the Western hemisphere – the United States and Latin America. It services this vast area with a fleet of 75 multi-class Offshore Supply Vessels (“OSVs”) and Multi-Purpose Support Vessels (“MPSVs”). It claims roughly three-quarters of its fleet is made up of high-spec or ultra high-spec vessels.
In 2022, the company pocketed $80.8 million in profits from $317.6 million of revenue.
Its quarterly topline has grown since. The firm reported a revenue of $160.2 million for the July-to-September period, up from $124.5 million a year ago.
J.P. Morgan, Barclays, DNB Markets, Piper Sandler, Guggenheim Securities, and Raymond James are joining as lead underwriters for the deal.
The largest stakeholder is Ares Management, a Los Angeles-based investment manager operating in the credit, private equity, and real estate markets. Ares and its affiliated entities currently own a total of 42 percent of Hornbeck.
New Horizons Offshore
Firms like Hornbeck play a critical role in the running of offshore operations. Their specialized nautical vessels act as lifelines, enabling the movement of employees, tools, and supplies to and from sea-based platforms.
According to some market research estimates, the offshore support services industry is estimated to be worth $22.6 billion in 2023 and is projected to grow to reach $31.4 billion by 2028. The energy industry remains one of the largest demand drivers, with an expected increase in offshore wind farms and continuing oil and gas sites.
Hornbeck is not the only offshore services firm readying to leave port and voyage out into the deep ocean of capital that awaits in public markets.
In September, Lafayette-based PHI Group filed with the SEC to float on the public markets. While Hornbeck focuses on sea-faring vessels, PHI serves offshore units by air with a fleet of over 200 helicopters. PHI voluntarily delisted from the Nasdaq in 2019. It filed for reorganization bankruptcy with the SEC because the firm could not repay $500 million worth of debt that was owed at the time.
About a year later, Hornbeck also filed a Chapter 11 form to delist so as to restructure over $1 billion in debt. Negotiations with borrowers fell through at the time as the price of oil plummeted amid the opening phase of the COVID-19 pandemic, which shook the industry.
Investors interested in Hornbeck will need to keep an eye on the horizon for this impending deal.
This article was produced and syndicated by Wealth of Geeks.