Tidewater launches $650 million senior notes offering

Published 23/06/2025, 12:38
Tidewater launches $650 million senior notes offering

HOUSTON - Tidewater Inc. (NYSE:TDW), a $2.3 billion market cap offshore vessel operator with a perfect Piotroski Score of 9 according to InvestingPro, announced Monday it has commenced a private offering of $650 million in unsecured senior notes due 2030.

The offshore vessel operator plans to use the proceeds, along with cash on hand, to repay its existing senior secured term loan and redeem both its outstanding 8.50% Senior Secured Bonds due 2026 and 10.375% Senior Unsecured Bonds due 2028. Funds will also cover premiums, accrued interest, fees and expenses related to these transactions. The refinancing aligns with the company’s moderate debt profile of $636 million and healthy liquidity position, reflected in a current ratio of 2.07.

The senior notes will be guaranteed by certain U.S. subsidiaries of Tidewater on a senior unsecured basis.

The offering is limited to qualified institutional buyers in the United States under Rule 144A of the Securities Act and to persons outside the U.S. under Regulation S. The notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption.

Tidewater operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production, and wind activities worldwide. The company generates annual EBITDA of $450 million and maintains strong financial health, earning an "GREAT" rating from InvestingPro, which offers a comprehensive analysis through its Pro Research Report, one of 1,400+ detailed company assessments available to subscribers.

This article is based on a press release statement from Tidewater Inc. The company noted that forward-looking statements in its announcement involve risks and uncertainties that could cause actual results to differ from expectations, including market conditions affecting the offering.

In other recent news, Tidewater Inc. reported first-quarter 2025 earnings that exceeded Wall Street expectations. The company posted an earnings per share of $0.83, surpassing the forecast of $0.66, and reported revenue of $333.4 million, which was higher than the anticipated $324.21 million. Tidewater’s strong performance was supported by a consistent gross margin of over 50% for the second consecutive quarter. Additionally, the company achieved an adjusted EBITDA of $154.2 million, up from $138.4 million in the previous quarter. Analysts at Raymond James and BTIG have not provided any upgrades or downgrades for Tidewater’s stock. Tidewater has also been actively engaging in share repurchases, utilizing $90 million for buybacks, which reduced the outstanding share count by approximately 2.5 million shares. The company remains focused on growth through potential acquisitions and maintains a positive market outlook, with no project cancellations reported.

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