Tidewater prices $650 million in senior notes at 9.125% interest rate

HOUSTON - Tidewater Inc. (NYSE:TDW), a $2.2 billion market cap offshore vessel operator with a perfect Piotroski Score of 9 according to InvestingPro, announced Monday the pricing of $650 million in unsecured senior notes due 2030, which will bear interest at 9.125% per year. The notes will be issued at par with maturity set for July 15, 2030.

The transaction is expected to close on July 7, 2025, subject to customary closing conditions. According to the company’s statement, proceeds from the offering will be used to repay Tidewater’s existing senior secured term loan, fund the redemption of its outstanding 8.50% Senior Secured Bonds due 2026 and 10.375% Senior Unsecured Bonds due 2028, and cover related premiums and expenses. The company maintains a healthy financial position with a current ratio of 2.07 and operates with moderate debt levels, as revealed by InvestingPro analysis.

The notes will be senior unsecured obligations guaranteed by certain U.S. subsidiaries of the company. The offering is being made only 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.

Tidewater, which owns and operates what it describes as the largest fleet of offshore support vessels in the industry, has not registered the notes under the Securities Act, meaning they cannot be sold in the U.S. without registration or an applicable exemption.

This information is based on a press release statement from Tidewater Inc.

In other recent news, Tidewater Inc. reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $0.83, compared to the forecasted $0.66. The company also exceeded revenue projections, reporting $333.4 million against the anticipated $324.21 million. Additionally, Tidewater launched a $650 million offering of unsecured senior notes due in 2030, intending to use the proceeds to repay existing debt and cover related expenses. The notes are offered to qualified institutional buyers in the U.S. and persons outside the U.S. under specific regulations.

In their earnings call, Tidewater highlighted maintaining a gross margin of over 50% for the second consecutive quarter, with a positive market outlook and no project cancellations reported. The company also discussed its strategic focus on fleet modernization and operational efficiencies. Tidewater’s performance showed resilience despite a 3% revenue decline from the previous quarter. The firm also reiterated its full-year revenue guidance of $1.32 billion to $1.38 billion, with a gross margin between 48% and 50%.

Furthermore, Tidewater’s management emphasized a cautious but optimistic outlook for the remainder of 2025, expecting improved utilization and margin enhancements in the latter half of the year. Analyst discussions also revealed a stable market position with ongoing tender discussions for future projects. The company continues to explore potential acquisitions as part of its growth strategy, while also evaluating refinancing options to optimize its capital structure.

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