As filed with the Securities and Exchange Commission on March 5, 2015
Registration No. 333-192970
UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 2
to
FORM S-3
REGISTRATION STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
HERCULES OFFSHORE, INC.
Subsidiary Guarantors Listed on Schedule A Hereto
(Exact name of registrant as specified in its charter)
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| Delaware |
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9 Greenway Plaza, Suite 2200
Houston, Texas 77046
(713) 350-5100 |
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56-2542838 |
| (State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification Number) |
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(Address, including zip code, and telephone
number, including area code, of
registrant’s principal executive offices) |
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Beau M. Thompson, Esq.
Senior Vice President, General Counsel and Secretary
Hercules Offshore, Inc.
9 Greenway Plaza, Suite 2200
Houston, Texas 77046
(713) 350-5100
(Name,
address, including zip code, and telephone number,
including area code, of agent for service)
Copies To:
Melinda Brunger, Esq.
Andrews Kurth LLP
600
Travis Street
Suite 4200
Houston, Texas 77002
(713) 220-4200
Approximate
date of commencement of proposed sale to the public: From time to time after the effective date of this Registration Statement.
If
the only securities being registered on this Form are to be offered pursuant to dividend or interest reinvestment plans, please check the following box. ¨
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, as amended (the “Securities Act”), other than securities offered only in connection with dividend or interest reinvestment plans, check the following
box. x
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become
effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box. ¨
If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional
securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box. ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting
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| Large accelerated filer |
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x |
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Accelerated filer |
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¨ |
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| Non-accelerated filer |
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¨ (Do not check if a smaller reporting company) |
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Smaller reporting company |
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CALCULATION OF REGISTRATION FEE
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| Title of Each Class of
Securities to be Registered |
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Amount to be
Registered/Proposed
Maximum Aggregate
Offering Price(1)(2) |
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Amount of
Registration Fee(3) |
| Debt Securities |
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| Preferred Stock, par value $0.01 per share |
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| Common Stock, par value $0.01 per share |
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| Warrants |
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| Rights (4) |
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| Purchase Contracts (5) |
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| Depositary Shares (6) |
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| Guarantees (7) |
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| Units (8) |
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| Total |
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$400,000,000.00 |
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$46,480.00* |
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| (1) |
Estimated solely for the purpose of computing the registration fee pursuant to Rule 457(o) under the Securities Act and exclusive of accrued interest, distributions and dividends, if any. In no event will the aggregate
initial offering price of all securities issued from time to time pursuant to this Registration Statement exceed $400,000,000.00 or the equivalent thereof in foreign currencies, foreign currency units or composite currencies. If any debt securities
are issued at an original issue discount, then the offering price shall be in such greater principal amount as shall result in an aggregate initial offering price of up to $400,000,000.00 or the equivalent thereof in foreign currencies, foreign
currency units or composite currencies, less the dollar amount of any securities previously issued hereunder. Any securities registered hereunder may be sold separately or as units with other securities registered hereunder or other securities.
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| (2) |
There is being registered hereunder such indeterminate number or amount of debt securities (with or without guarantees), common stock, preferred stock, warrants, rights, units, purchase contracts, and depositary shares
as may from time to time be issued by the registrant at indeterminate prices and in such amount as shall result in an aggregate offering price not to exceed $400,000,000.00, and as may be issuable upon conversion, redemption, exchange, exercise or
settlement of any securities registered hereunder, including under any applicable antidilution provision. |
| (3) |
Calculated under Rule 457(o) of the rules and regulations under the Securities Act of 1933, as amended. |
| (4) |
Rights may be issued to purchase shares of common stock and/or any of the other securities of the registrant registered hereby. Each series of rights will be issued under a separate rights agreement to be entered into
between the registrant and a bank or trust company, as rights agent. |
| (5) |
Purchase contracts may be issued for the purchase and sale of any securities of the registrant registered hereby. |
| (6) |
In the event the registrant elects to offer fractional interests in shares of the preferred stock registered hereunder, preferred stock will be issued to the depositary under a deposit agreement, and fractional
interests will be evidenced by a depositary receipt. |
| (7) |
Pursuant to Rule 457(m), no additional registration fee is required in respect of the guarantees of debt securities registered hereunder. |
| (8) |
Units may consist of any combination of the securities being registered hereunder. |
The
Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section
8(a), may determine.
SCHEDULE A
SUBSIDIARY GUARANTORS
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| Exact Name of Registrant as Specified in its Charter (1) |
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State or
Jurisdiction of
Incorporation or
Organization |
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I.R.S. Employer
Identification No. |
| Cliffs Drilling Company |
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Delaware |
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76-0248934 |
| Cliffs Drilling Trinidad L.L.C. |
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Delaware |
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76-0555205 |
| FDT LLC |
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Delaware |
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76-0667581 |
| FDT Holdings LLC |
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Delaware |
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72-1494277 |
| Hercules Drilling Company, LLC |
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Delaware |
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81-0652771 |
| Hercules Liftboat Company, LLC |
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Delaware |
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43-2060791 |
| Hercules Offshore Liftboat Company LLC |
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Delaware |
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27-0685303 |
| Hercules Offshore Services LLC |
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Delaware |
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20-5951670 |
| HERO Holdings, Inc. |
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Delaware |
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27-1705475 |
| SD Drilling LLC |
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Delaware |
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27-5428190 |
| THE Offshore Drilling Company |
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Delaware |
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72-1284465 |
| THE Onshore Drilling Company |
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Delaware |
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20-5601072 |
| TODCO Americas Inc. |
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Delaware |
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20-2970289 |
| TODCO International Inc. |
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Delaware |
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20-2970326 |
| (1) |
The name, address, including zip code, and telephone number of the agent for service of process are the same as those of Hercules Offshore, Inc. |
EXPLANATORY NOTE
This Post-Effective Amendment No. 2 to the Registration Statement on Form S-3 (Commission File No. 333-192970) (the
“Registration Statement”) of Hercules Offshore, Inc. (the “Registrant”) is being filed for the purpose of updating the Registration Statement to reflect that the Registrant is no longer a well-known seasoned issuer (as such term
is defined in Rule 405 of the Securities Act). This Post-Effective Amendment No. 2 adds disclosure to the Registration Statement required for a registrant other than a well-known seasoned issuer.
The information in this prospectus is not complete and may be changed. We may not sell
these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED MARCH 5, 2015
Prospectus
Hercules Offshore, Inc.
$400,000,000
Debt
Securities
Preferred Stock
Common Stock
Warrants
Rights
Purchase
Contracts
Depositary Shares
Guarantees
Units
We will provide the specific terms of the securities in supplements to this prospectus. You should read this prospectus and any supplement
carefully before you invest. Our common stock is listed on the NASDAQ Global Select Market under the trading symbol “HERO.”
Investing in our securities involves risks. Please read “Risk Factors” on page 5 of this prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined whether this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date
of this prospectus is , 2015
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we file with the Securities and Exchange Commission (the “SEC”) using a
“shelf” registration process. Under this shelf registration process, we may offer from time to time up to $400,000,000 in total aggregate offering price of our securities. Each time we offer securities, we will provide you with a
prospectus supplement that will describe, among other things, the specific amounts, types and prices of the securities being offered and the terms of the offering. Any prospectus supplement may add, update or change information contained or
incorporated by reference in this prospectus. Any statement that we make in or incorporate by reference in this prospectus will be modified or superseded by any inconsistent statement made by us or incorporated by reference in a prospectus
supplement. Therefore, you should read this prospectus (including any documents incorporated by reference) and any attached prospectus supplement before you invest in our securities.
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WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements and other information with the SEC. You can read and copy these
materials at the SEC’s public reference room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about the operation of the SEC’s public reference room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an
Internet site that contains information we have filed electronically with the SEC, which you can access over the Internet at http://www.sec.gov.
This prospectus is part of a registration statement we have filed with the SEC relating to the securities we may offer. As permitted by SEC
rules, this prospectus does not contain all of the information we have included in the registration statement and the accompanying exhibits and schedules we file with the SEC. You may refer to the registration statement, exhibits and schedules for
more information about us and the securities. The registration statement, exhibits and schedules are available at the SEC’s public reference room or through its Internet site.
General information about us, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K, as well as any amendments and exhibits to those reports, are available free of charge through our website at http://www.herculesoffshore.com as soon as reasonably practicable after we file them with, or furnish them to, the SEC.
Information on our website is not incorporated into this prospectus or our other securities filings and is not a part of this prospectus.
INCORPORATION BY REFERENCE
The SEC allows us to “incorporate by reference” the information we have filed with it, which means that we can disclose important
information to you by referring you to those documents. The information we incorporate by reference is an important part of this prospectus, and later information that we file with the SEC will automatically update and supersede this information. We
incorporate by reference the documents listed below and any future filings we make with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), until the termination of
this offering. The documents we incorporate by reference are:
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our annual report on Form 10-K for the year ended December 31, 2014; |
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our current reports on Form 8-K filed with the SEC on February 24, 2015 and March 4, 2015; and |
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the description of our common stock contained in our registration statement on Form 8-A as filed with the SEC on October 21, 2005, as that description may be updated from time to time. |
All documents that we file pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus and until any
offerings hereunder are completed will be deemed to be incorporated by reference into this prospectus and will be a part of this prospectus from the date of the filing of the document. Any statement contained in a document incorporated or deemed to
be incorporated by reference in this prospectus will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or in any other subsequently filed document that also is or is
deemed to be incorporated by reference in this prospectus modifies or supersedes that statement. Any statement that is modified or superseded will not constitute a part of this prospectus, except as modified or superseded.
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We will provide to each person, including any beneficial owner, to whom a prospectus is
delivered, a copy of these filings, other than an exhibit to these filings unless we have specifically incorporated that exhibit by reference into the filing, upon written or oral request and at no cost. Requests should be made by writing or
telephoning us at the following address:
Hercules Offshore, Inc.
9 Greenway Plaza, Suite 2200
Houston, Texas 77046
Telephone:
(713) 350-5100
Attention: Investor Relations
You should rely only on the information contained or incorporated by reference in this prospectus, the prospectus supplement and any
pricing supplement. We have not authorized any person, including any salesman or broker, to provide information other than that provided or incorporated by reference in this prospectus, the prospectus supplement or any pricing supplement. We are not
making an offer to sell or soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information in this prospectus, the prospectus supplement and any pricing supplement is
accurate only as of the date on its cover page and that any information we have incorporated by reference is accurate only as of the date of the document incorporated by reference.
FORWARD-LOOKING INFORMATION
This prospectus, including the information we incorporate by reference, includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act. All statements, other than statements of historical fact, included in this prospectus or the documents we
incorporate by reference that address outlook, activities, events or developments that we intend, contemplate, estimate, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These include such
matters as:
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our levels of indebtedness, covenant compliance and access to capital under current market conditions; |
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our ability to enter into new contracts for our rigs and liftboats, including the Hercules Triumph and Hercules Resilience, and future utilization rates and dayrates for the units; |
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our ability to maintain our contracts on current terms, to renew or extend our contracts, or enter into new contracts, when such contracts expire; |
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demand for our rigs and our liftboats; |
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activity levels of our customers and their expectations of future energy prices and ability to obtain drilling permits in an efficient manner or at all; |
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sufficiency and availability of funds for required capital expenditures, working capital and debt service; |
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our ability to close the sale and purchase of assets on time; |
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expected completion times for our repair, refurbishment and upgrade projects; |
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our ability to complete our shipyard projects incident free; |
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our ability to complete our shipyard projects on time to avoid cost overruns and contract penalties; |
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our ability to effectively reactivate rigs that we have stacked; |
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the timing and cost of shipyard projects and refurbishments and the return of idle rigs to work; |
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our plans to increase international operations; |
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expected useful lives of our rigs and liftboats; |
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future capital expenditures and refurbishment, reactivation, transportation, repair and upgrade costs; |
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liabilities and restrictions under applicable laws of the jurisdictions in which we operate and regulations protecting the environment; |
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expected outcomes of litigation, investigations, claims, disputes and tax audits and their expected effects on our financial condition and results of operations; |
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the existence of insurance coverage and the extent of recovery from our insurance underwriters for claims made under our insurance policies; and |
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expectations regarding offshore drilling and liftboat activity and dayrates, market conditions, demand for our rigs and liftboats, operating revenue, operating and maintenance expense, insurance coverage, insurance
expense and deductibles, interest expense, debt levels and other matters with regard to outlook and future earnings. |
We
have based these statements on our assumptions and analyses in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances.
Forward-looking statements by their nature involve substantial risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such statements. Although it is not
possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially are the risks and uncertainties described under the heading “Risk Factors”
below and in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, as well as the following:
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oil and natural gas prices and industry expectations about future prices; |
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levels of oil and gas exploration and production spending; |
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demand for and supply of offshore drilling rigs and liftboats; |
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our ability to enter into and the terms of future contracts; |
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compliance by our customers with the terms of our contracts, including the dayrate and payment obligations; |
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the adequacy and costs of sources of credit and liquidity; |
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our ability to collect receivables due from our customers; |
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the worldwide military and political environment, uncertainty or instability resulting from an escalation or additional outbreak of armed hostilities or other crises in the Middle East, North Africa, West Africa, Asia,
Eastern Europe and other significant oil and natural gas producing regions or acts of terrorism or piracy; |
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the ability of our customers in the U.S. Gulf of Mexico to obtain drilling permits in an efficient manner or at all; |
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the impact of governmental laws and regulations, including laws and regulations in the U.S. Gulf of Mexico following the Macondo well incident; |
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our ability to obtain in a timely manner visas and work permits for our employees working in international jurisdictions; |
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the impact of local content and cabotage laws and regulations in international jurisdictions in which we operate, particularly Nigeria; |
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the impact of tax laws, regulations, interpretations and audits in jurisdictions where we conduct business; |
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uncertainties relating to the level of activity in offshore oil and natural gas exploration, development and production; |
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competition and market conditions in the contract drilling and liftboat industries; |
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the availability of skilled personnel and the rising cost of labor; |
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labor relations and work stoppages, particularly in the Nigerian labor environment; |
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operating hazards such as hurricanes, severe weather and seas, fires, cratering, blowouts and other well control incidents, war, terrorism and cancellation or unavailability of insurance coverage or insufficient
insurance coverage; |
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the impact of public health outbreaks; |
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the enforceability and interpretations of indemnity and liability provisions contained in our drilling contracts, particularly in the U.S. Gulf of Mexico; |
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the effect of litigation, investigations, audits and contingencies; and |
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our inability to achieve our plans or carry out our strategy. |
Many of these factors are
beyond our ability to control or predict. Any of these factors, or a combination of these factors, could materially affect our future financial condition or results of operations and the ultimate accuracy of the forward-looking statements. These
forward-looking statements are not guarantees of our future performance, and our actual results and future developments may differ materially from those projected in the forward-looking statements. Management cautions against putting undue reliance
on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels. In addition, each forward-looking statement speaks only as of the date of the particular statement, and we undertake no
obligation to publicly update or revise any forward-looking statements except as required by applicable law.
HERCULES OFFSHORE, INC.
Hercules Offshore, Inc., a Delaware corporation, is a leading provider of shallow-water drilling and marine services to the oil and natural
gas exploration and production industry globally. We provide these services to national oil and gas companies, major integrated energy companies and independent oil and natural gas operators. Our diverse fleet of jackup rigs and liftboat vessels,
including two ultra-high specification jackup rigs, is capable of providing services such as oil and gas exploration and development drilling, well service, platform inspection, maintenance and decommissioning operations in several key shallow-water
provinces around the world.
Our principal executive office is located at 9 Greenway Plaza, Suite 2200 in Houston, Texas, and our
telephone number is (713) 350-5100.
RECENT EVENTS
Demand for the Company’s oilfield services is driven by its exploration and production customers’ capital spending, which can
experience significant fluctuation depending on current commodity prices and their expectations of future price levels, among other factors. The recent decline in the price of crude oil has negatively impacted dayrates and demand for the
Company’s services. In addition to the oil price decline, the consolidation of the domestic customer base has negatively impacted demand for jackup rigs in the U.S. Gulf of Mexico. Internationally, the new capacity growth expected over the next
three years could put further pressure on the operating environment for the existing jackup rig fleet. Although activity levels for liftboats are not as closely correlated to commodity prices as the Company’s drilling segments, commodity prices
are still a key driver of liftboat demand. Demand for liftboat services in West Africa has been volatile, which the Company believes has been driven by budgetary constraints with major customers primarily in Nigeria.
On February 25, 2015, the Company received a notice from Saudi Aramco terminating for convenience its drilling contract for the
Hercules 261, effective on or about March 27, 2015. The Company is in the process of seeking a basis for continuing the Hercules 261 contract. There will be no termination fee payable to the Company under the contract as a result
of such termination.
The Company’s immediate capital resources to fund and grow operations come from cash on hand, cash from
operations and availability under its revolving credit facility. The Company has taken numerous actions to mitigate the effects of the decline in activity levels, including but not limited to: (i) cold stacking nine rigs over the past six
months to significantly reduce operating expenses, (ii) significantly reducing its capital expenditures planned for 2015 and (iii) significantly reducing its workforce, both onshore and offshore. The Company continues to monitor its
operating environment and will respond to further activity level declines as appropriate. The Company believes these steps will enhance its liquidity and further believes, based upon the current business environment and activity levels, it will have
adequate liquidity to fund its operations through December 31, 2015; however, the Company cannot predict how an extended period of low commodity prices will affect its operations and liquidity levels.
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RISK FACTORS
The securities to be offered by this prospectus may involve a high degree of risk. When considering an investment in our securities, you
should consider carefully all of the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2014 and any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K or other documents incorporated by
reference into this prospectus or filed by us with the SEC after the date of this prospectus, as well as those risk factors that may be included in any applicable prospectus supplement.
USE OF PROCEEDS
Unless we inform you otherwise in any applicable prospectus supplement, we expect to use the net proceeds from the sale of the securities
described in this prospectus for general corporate purposes, including repayment or refinancing of debt, acquisitions, working capital, capital expenditures and repurchases and redemptions of securities. Pending any specific application, we may
initially invest funds in short-term marketable securities or apply them to the reduction of indebtedness.
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RATIO OF EARNINGS TO FIXED CHARGES
We have presented in the table below our historical consolidated ratio of earnings to fixed charges for the periods shown. We had no preferred
stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.
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Year Ended December 31, |
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2014 |
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2013 |
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2012 |
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2011 |
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2010 |
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(a) |
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(b) |
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(c) |
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(d) |
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(e) |
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Earnings as adjusted were insufficient to cover our fixed charges by $210.3 million for the year ended December 31, 2014. |
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Earnings as adjusted were insufficient to cover our fixed charges by $56.3 million for the year ended December 31, 2013. |
| (c) |
Earnings as adjusted were insufficient to cover our fixed charges by $142.2 million for the year ended December 31, 2012. |
| (d) |
Earnings as adjusted were insufficient to cover our fixed charges by $81.4 million for the year ended December 31, 2011. |
| (e) |
Earnings as adjusted were insufficient to cover our fixed charges by $208.9 million for the year ended December 31, 2010. |
We have computed the ratios of earnings to fixed charges by dividing earnings by fixed charges. For this purpose, “earnings” consist
of pretax income (loss) from continuing operations before adjustment for noncontrolling interest and loss from equity investee, plus fixed charges and amortization of capitalized interest, less capitalized interest. “Fixed charges” consist
of interest expensed and capitalized (including amortization of debt expense), less realized losses on derivative instruments included in interest expense, plus our estimate of the interest component of rental expense.
DESCRIPTION OF DEBT SECURITIES
Any debt securities that we offer under a prospectus supplement will be direct, unsecured general obligations. The debt securities will be
either senior debt securities or subordinated debt securities. The debt securities will be issued under one or more separate indentures between us and U.S. Bank National Association, as trustee. Senior debt securities will be issued under a senior
indenture and subordinated debt securities will be issued under a subordinated indenture. Together, the senior indenture and the subordinated indenture are called “indentures.” The indentures will be supplemented by supplemental
indentures, the material provisions of which will be described in a prospectus supplement.
As used in this description, the words
“we,” “us” and “our” refer to Hercules Offshore, Inc. and not to any of its subsidiaries or affiliates.
We
have summarized some of the material provisions of the indentures below. This summary does not restate those agreements in their entirety. A form of senior indenture and a form of subordinated indenture have been filed as exhibits to the
registration statement of which this prospectus is a part. We urge you to read each of the indentures because each one, and not this description, defines the rights of holders of debt securities.
Capitalized terms defined in the indentures have the same meanings when used in this prospectus.
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General
The debt securities issued under the indentures will be our direct, unsecured general obligations. The senior debt securities will rank equally
with all of our other senior and unsubordinated debt. The subordinated debt securities will have a junior position to all of our senior debt.
The following description sets forth the general terms and provisions that could apply to debt securities that we may offer to sell. A
prospectus supplement relating to any series of debt securities being offered will include specific terms relating to the offering. These terms will include some or all of the following, among others:
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the title and type of the debt securities; |
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the total principal amount of the debt securities; |
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the percentage of the principal amount at which the debt securities will be issued and any payments due if the maturity of the debt securities is accelerated; |
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the dates on which the principal of the debt securities will be payable; |
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the interest rate which the debt securities will bear and the interest payment dates for the debt securities; |
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any conversion or exchange features; |
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any optional redemption periods; |
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any sinking fund or other provisions that would obligate us to repurchase or otherwise redeem some or all of the debt securities; |
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any provisions granting special rights to holders when a specified event occurs; |
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any changes to or additional events of default or covenants; |
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any special tax implications of the debt securities, including provisions for original issue discount securities, if offered; and |
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any other terms of the debt securities. |
Neither of the indentures will limit the amount of
debt securities that may be issued. Each indenture will allow debt securities to be issued up to the principal amount that may be authorized by us and may be in any currency or currency unit designated by us.
Debt securities of a series may be issued in registered or global form.
Subsidiary Guarantees
If the applicable
prospectus supplement relating to a series of our senior debt securities provides that those senior debt securities will have the benefit of a guarantee by any or all of our subsidiaries, payment of the principal, premium, if any, and interest on
those senior debt securities will be fully and unconditionally guaranteed on an unsecured, unsubordinated basis by such subsidiary or subsidiaries. The guarantee of senior debt securities will rank equally in right of payment with all of the
unsecured and unsubordinated indebtedness of such subsidiary or subsidiaries.
If the applicable prospectus supplement relating to a
series of our subordinated debt securities provides that those subordinated debt securities will have the benefit of a guarantee by any or all of our subsidiaries, payment of the principal, premium, if any, and interest on those subordinated debt
securities will be fully and unconditionally guaranteed on an unsecured, subordinated basis by such subsidiary or subsidiaries. The guarantee of the subordinated debt securities will be subordinated in right of payment to all of such
subsidiary’s or subsidiaries’ existing and future senior indebtedness (as defined in the related prospectus supplement), including any guarantee of the senior debt securities, to the same extent and in the same manner as the subordinated
debt securities are subordinated to our senior indebtedness (as defined in the related prospectus supplement). See “—Subordination” below.
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The obligations of our subsidiaries under any such guarantee will be limited as necessary to
prevent the guarantee from constituting a fraudulent conveyance or fraudulent transfer under applicable law.
Covenants
Under the indentures, we:
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will pay the principal of, and interest and any premium on, the debt securities when due; |
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will maintain a place of payment; |
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will deliver a certificate to the trustee each fiscal year reviewing our compliance with our obligations under the indentures; |
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will preserve our corporate existence; and |
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will segregate or deposit with any paying agent sufficient funds for the payment of any principal, interest or premium on or before the due date of such payment. |
Mergers and Sale of Assets
Each of the
indentures will provide that we may not consolidate with or merge into any other Person or sell, convey, transfer or lease all or substantially all of our properties and assets (on a consolidated basis) to another Person, unless:
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either: (a) we are the surviving Person; or (b) the Person formed by or surviving any such consolidation, amalgamation or merger or resulting from such conversion (if other than us) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a corporation, limited liability company or limited partnership organized or existing under the laws of the United States, any State thereof or the District of Columbia;
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the Person formed by or surviving any such conversion, consolidation, amalgamation or merger (if other than us) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made
assumes all of our obligations under such indenture and the debt securities governed thereby pursuant to agreements reasonably satisfactory to the trustee, which may include a supplemental indenture; |
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we or the successor will not immediately be in default under such indenture; and |
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we deliver an officer’s certificate and opinion of counsel to the trustee stating that such consolidation, amalgamation, merger, conveyance, sale, transfer or lease and any supplemental indenture comply with such
indenture and that all conditions precedent set forth in such indenture have been complied with. |
Upon the assumption of our
obligations under each indenture by a successor, we will be discharged from all obligations under such indenture.
As used in the
indenture and in this description, the word “Person” means any individual, corporation, company, limited liability company, partnership, limited partnership, joint venture, association, joint-stock company, trust, other entity,
unincorporated organization or government or any agency or political subdivision thereof.
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Events of Default
“Event of default,” when used in the indentures with respect to debt securities of any series, will mean any of the
following:
(1) default in the payment of any interest upon any debt security of that series when it becomes due and
payable, and continuance of such default for a period of 30 days;
(2) default in the payment of the principal of (or
premium, if any, on) any debt security of that series at its maturity;
(3) default in the performance, or breach,
of any covenant set forth in Article Ten of the applicable indenture (other than a covenant a default in the performance of which or the breach of which is elsewhere specifically dealt with as an event of default or which has expressly been included
in such indenture solely for the benefit of one or more series of debt securities other than that series), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to us by the
trustee or to us and the trustee by the holders of at least 25% in principal amount of the then-outstanding debt securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” thereunder;
(4) default in the performance, or breach, of
any covenant in the applicable indenture (other than a covenant set forth in Article Ten of such indenture or any other covenant a default in the performance of which or the breach of which is elsewhere specifically dealt with as an event of default
or which has expressly been included in such indenture solely for the benefit of one or more series of debt securities other than that series), and continuance of such default or breach for a period of 180 days after there has been given, by
registered or certified mail, to us by the trustee or to us and the trustee by the holders of at least 25% in principal amount of the then-outstanding debt securities of that series a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a “Notice of Default” thereunder;
(5) we, pursuant
to or within the meaning of any bankruptcy law, (i) commence a voluntary case, (ii) consent to the entry of any order for relief against us in an involuntary case, (iii) consent to the appointment of a custodian of us or for all or
substantially all of our property, or (iv) make a general assignment for the benefit of our creditors;
(6) a court of
competent jurisdiction enters an order or decree under any bankruptcy law that (i) is for relief against us in an involuntary case, (ii) appoints a custodian of us or for all or substantially all of our property, or (iii) orders the
liquidation of us, and the order or decree remains unstayed and in effect for 60 consecutive days;
(7) default in the
deposit of any sinking fund payment when due; or
(8) any other event of default provided with respect to debt securities
of that series in accordance with provisions of the indenture related to the issuance of such debt securities.
An event of default for a
particular series of debt securities does not necessarily constitute an event of default for any other series of debt securities issued under an indenture. The trustee may withhold notice to the holders of debt securities of any default (except in
the payment of principal, interest or any premium) if it considers the withholding of notice to be in the interests of the holders.
If an
event of default for any series of debt securities occurs and continues, the trustee or the holders of 25% in aggregate principal amount of the debt securities of the series may declare the entire principal of all of the debt securities of that
series to be due and payable immediately. If this happens, subject to certain conditions, the holders of a majority of the aggregate principal amount of the debt securities of that series can void the declaration.
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Other than its duties in case of a default, a trustee is not obligated to exercise any of its
rights or powers under any indenture at the request, order or direction of any holders, unless the holders offer the trustee reasonable indemnity. If they provide this reasonable indemnification, the holders of a majority in principal amount
outstanding of any series of debt securities may direct the time, method and place of conducting any proceeding or any remedy available to the trustee, or exercising any power conferred upon the trustee, for any series of debt securities.
Amendments and Waivers
Subject to
certain exceptions, the indentures, the debt securities issued thereunder or the subsidiary guarantees may be amended or supplemented with the consent of the holders of a majority in aggregate principal amount of the then-outstanding debt securities
of each series affected by such amendment or supplemental indenture, with each such series voting as a separate class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, debt
securities) and, subject to certain exceptions, any past default or compliance with any provisions may be waived with respect to each series of debt securities with the consent of the holders of a majority in principal amount of the then-outstanding
debt securities of such series voting as a separate class (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, debt securities).
Without the consent of each holder of the outstanding debt securities affected, an amendment, supplement or waiver may not, among other
things:
(1) change the stated maturity of the principal of, or any installment of principal of or interest on, any debt
security, reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the redemption thereof, reduce the amount of the principal of an original issue discount security that would be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to the applicable indenture, change the coin or currency in which any debt security or any premium or the interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the stated maturity thereof (or, in the case of redemption, on or after the redemption date therefor);
(2) reduce the percentage in principal amount of the then-outstanding debt securities of any series, the consent of the holders
of which is required for any such amendment or supplemental indenture, or the consent of the holders of which is required for any waiver of compliance with certain provisions of the applicable indenture or certain defaults thereunder and their
consequences provided for in the applicable indenture;
(3) modify any of the provisions set forth in (i) the
provisions of the applicable indenture related to the holder’s unconditional right to receive principal, premium, if any, and interest on the debt securities or (ii) the provisions of the applicable indenture related to the waiver of past
defaults under such indenture;
(4) waive a redemption payment with respect to any debt security; provided, however, that
any purchase or repurchase of debt securities shall not be deemed a redemption of the debt securities;
(5) release any
guarantor from any of its obligations under its guarantee or the applicable indenture, except in accordance with the terms of such indenture (as amended or supplemented); or
(6) make any change in the foregoing amendment and waiver provisions, except to increase any percentage provided for therein or
to provide that certain other provisions of the applicable indenture cannot be modified or waived without the consent of the holder of each then-outstanding debt security affected thereby.
Notwithstanding the foregoing, without the consent of any holder of debt securities, we, the guarantors and the trustee may amend each of the
indentures or the debt securities issued thereunder to:
(1) cure any ambiguity or defect or to correct or supplement any
provision therein that may be inconsistent with any other provision therein;
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(2) evidence the succession of another Person to us and the assumption by any
such successor of our covenants therein and, to the extent applicable, of the debt securities;
(3) provide for
uncertificated debt securities in addition to or in place of certificated debt securities; provided that the uncertificated debt securities are issued in registered form for purposes of Section 163(f) of the Internal Revenue Code of 1986, as
amended (the “Code”), or in the manner such that the uncertificated debt securities are described in Section 163(f)(2)(B) of the Code;
(4) add a guarantee and cause any Person to become a guarantor, and/or to evidence the succession of another Person to a
guarantor and the assumption by any such successor of the guarantee of such guarantor therein and, to the extent applicable, endorsed upon any debt securities of any series;
(5) secure the debt securities of any series;
(6) add to the covenants such further covenants, restrictions, conditions or provisions as we shall consider to be appropriate
for the benefit of the holders of all or any series of debt securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of debt securities, stating that such covenants are expressly
being included solely for the benefit of such series), to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an event of default permitting the enforcement of
all or any of the several remedies provided in the applicable indenture as set forth therein, or to surrender any right or power therein conferred upon us; provided, that in respect of any such additional covenant, restriction, condition or
provision, such amendment or supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon
such an event of default or may limit the remedies available to the trustee upon such an event of default or may limit the right of the holders of a majority in aggregate principal amount of the debt securities of such series to waive such an event
of default;
(7) make any change to any provision of the applicable indenture that does not adversely affect the rights or
interests of any holder of debt securities issued thereunder;
(8) provide for the issuance of additional debt securities
in accordance with the provisions set forth in the applicable indenture;
(9) add any additional defaults or events of
default in respect of all or any series of debt securities;
(10) add to, change or eliminate any of the provisions of the
applicable indenture to such extent as shall be necessary to permit or facilitate the issuance of debt securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons;
(11) change or eliminate any of the provisions of the applicable indenture; provided that any such change or elimination shall
become effective only when there is no debt security outstanding of any series created prior to the execution of such amendment or supplemental indenture that is entitled to the benefit of such provision;
(12) establish the form or terms of debt securities of any series as permitted thereunder, including to reopen any series of
any debt securities as permitted thereunder;
(13) evidence and provide for the acceptance of appointment thereunder by a
successor trustee with respect to the debt securities of one or more series and to add to or change any of the provisions of the applicable indenture as shall be necessary to provide for or facilitate the administration of the trusts thereunder by
more than one trustee, pursuant to the requirements of such indenture;
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(14) conform the text of the applicable indenture (and/or any supplemental
indenture) or any debt securities issued thereunder to any provision of a description of such debt securities appearing in a prospectus or prospectus supplement or an offering memorandum or offering circular to the extent that such provision appears
on its face to have been intended to be a verbatim recitation of a provision of such indenture (and/or any supplemental indenture) or any debt securities issued thereunder; or
(15) modify, eliminate or add to the provisions of the applicable indenture to such extent as shall be necessary to
effect the qualification of such indenture under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”), or under any similar federal statute subsequently enacted, and to add to such indenture such other provisions
as may be expressly required under the Trust Indenture Act.
The consent of the holders is not necessary under either indenture to
approve the particular form of any proposed amendment. It is sufficient if such consent approves the substance of the proposed amendment. After an amendment with the consent of the holders under an indenture becomes effective, we are required to
mail to the holders of debt securities thereunder a notice briefly describing such amendment. However, the failure to give such notice to all such holders, or any defect therein, will not impair or affect the validity of the amendment.
Legal Defeasance and Covenant Defeasance
Each indenture provides that we may, at our option and at any time, elect to have all of our obligations discharged with respect to the
debt securities outstanding thereunder and all obligations of any guarantors of such debt securities discharged with respect to their guarantees (“Legal Defeasance”), except for:
(1) the rights of holders of outstanding debt securities to receive payments in respect of the principal of, or interest or
premium, if any, on, such debt securities when such payments are due from the trust referred to below;
(2) our obligations
with respect to the debt securities concerning temporary debt securities, registration of debt securities, mutilated, destroyed, lost or stolen debt securities, the maintenance of an office or agency for payment and money for security payments held
in trust;
(3) the rights, powers, trusts, duties and immunities of the trustee, and our and each guarantor’s
obligations in connection therewith; and
(4) the Legal Defeasance and Covenant Defeasance (as defined below) provisions of
the applicable indenture.
In addition, we may, at our option and at any time, elect to have our obligations released with respect
to certain provisions of each indenture, including certain provisions described in any prospectus supplement (such release and termination being referred to as “Covenant Defeasance”), and thereafter any failure to comply with such
obligations or provisions will not constitute a default or event of default. In addition, in the event Covenant Defeasance occurs in accordance with the applicable indenture, any defeasible event of default will no longer constitute an event of
default.
In order to exercise either Legal Defeasance or Covenant Defeasance:
(1) we must irrevocably deposit with the trustee, in trust, for the benefit of the holders of the debt securities, cash in U.S.
dollars, non-callable U.S. government securities, or a combination of cash in U.S. dollars and non-callable U.S. government securities, in amounts as will be sufficient, in the opinion of a nationally recognized investment bank, appraisal firm or
firm of independent public accountants, to pay the principal of, and interest and premium, if any, on, the outstanding debt securities on the stated date for payment thereof or on the applicable redemption date, as the case may be, and we must
specify whether the debt securities are being defeased to such stated date for payment or to a particular redemption date;
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(2) in the case of Legal Defeasance, we must deliver to the trustee an opinion of
counsel reasonably acceptable to the trustee confirming that (a) we have received from, or there has been published by, the Internal Revenue Service a ruling or (b) since the issue date of the debt securities, there has been a change in
the applicable federal income tax law, in either case to the effect that, and based thereon such opinion of counsel will confirm that, the holders of the outstanding debt securities will not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same time as would have been the case if such Legal Defeasance had not occurred;
(3) in the case of Covenant Defeasance, we must deliver to the trustee an opinion of counsel reasonably acceptable to the
trustee confirming that the holders of the outstanding debt securities will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;
(4) no
default or event of default shall have occurred and be continuing on the date of such deposit (other than a default or event of default resulting from the borrowing of funds to be applied to such deposit);
(5) the deposit must not result in a breach or violation of, or constitute a default under, any other instrument to which we
are, or any guarantor is, a party or by which we are, or any guarantor is, bound;
(6) such Legal Defeasance or Covenant
Defeasance must not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than the applicable indenture) to which we are, or any of our subsidiaries is, a party or by which we are, or any of
our subsidiaries is, bound;
(7) we must deliver to the trustee an officer’s certificate stating that the deposit was
not made by us with the intent of preferring the holders of debt securities over our other creditors with the intent of defeating, hindering, delaying or defrauding our creditors or the creditors of others;
(8) we must deliver to the trustee an officer’s certificate stating that all conditions precedent set forth in clauses
(1) through (6) of this paragraph have been complied with; and
(9) we must deliver to the trustee an opinion of
counsel (which opinion of counsel may be subject to customary assumptions, qualifications, and exclusions) stating that all conditions precedent set forth in clauses (2), (3) and (6) of this paragraph have been complied with.
Satisfaction and Discharge
Each of the
indentures will be discharged and will cease to be of further effect (except as to surviving rights of registration of transfer or exchange of debt securities and certain rights of the trustee, as expressly provided for in such indenture) as to all
outstanding debt securities issued thereunder and the guarantees issued thereunder when:
(1) either (a) all of the
debt securities theretofore authenticated and delivered under such indenture (except lost, stolen or destroyed debt securities that have been replaced or paid and debt securities for the payment of which money has theretofore been deposited in trust
or segregated and held in trust by us and thereafter repaid to us or discharged from such trust) have been delivered to the trustee for cancellation or (b) all debt securities not theretofore delivered to the trustee for cancellation have
become due and payable, will become due and payable at their stated maturity within one year, or are to be called for redemption within one year under arrangements satisfactory to the trustee for the giving of notice of redemption by the trustee in
the name, and at the expense, of us, and we have irrevocably deposited or caused to be deposited with the trustee funds, in an amount sufficient to pay and discharge the entire indebtedness on the debt securities not theretofore delivered to the
trustee for cancellation, for principal of and premium, if any, and interest on the debt securities to the date of deposit (in the case of debt securities that have become due and payable) or to the stated maturity or redemption date, as the case
may be, together with instructions from us irrevocably directing the trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be;
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(2) we have paid all other sums then due and payable under such indenture by us;
and
(3) we have delivered to the trustee an officer’s certificate and an opinion of counsel, which, taken together,
state that all conditions precedent under such indenture relating to the satisfaction and discharge of such indenture have been complied with.
No
Personal Liability of Directors, Managers, Officers, Employees, Partners, Members and Stockholders
No director, manager, officer,
employee, incorporator, partner, member or stockholder of us or any guarantor, as such, shall have any liability for any of our obligations or those of the guarantors under the debt securities, the indentures, the guarantees or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each holder of debt securities, upon our issuance of the debt securities and execution of the indentures, waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the debt securities. Such waiver may not be effective to waive liabilities under the federal securities laws and it is the view of the SEC that such a waiver is against public policy.
Denominations
Unless stated otherwise in
the prospectus supplement for each issuance of debt securities, the debt securities will be issued in denominations of $1,000 each or integral multiples of $1,000.
Paying Agent and Registrar
The trustee
will initially act as paying agent and registrar for the debt securities. We may change the paying agent or registrar without prior notice to the holders of the debt securities, and we may act as paying agent or registrar.
Transfer and Exchange
A holder may
transfer or exchange debt securities in accordance with the applicable indenture. The registrar and the trustee may require a holder, among other things, to furnish appropriate endorsements and transfer documents, and we may require a holder to pay
any taxes and fees required by law or permitted by the applicable indenture. We are not required to transfer or exchange any debt security selected for redemption. In addition, we are not required to transfer or exchange any debt security for a
period of 15 days before a selection of debt securities to be redeemed.
Subordination
The payment of the principal of and premium, if any, and interest on subordinated debt securities and any of our other payment obligations in
respect of subordinated debt securities (including any obligation to repurchase subordinated debt securities) is subordinated in certain circumstances in right of payment, as set forth in the subordinated indenture, to the prior payment in full in
cash of all senior debt.
We also may not make any payment, whether by redemption, purchase, retirement, defeasance or otherwise, upon or
in respect of subordinated debt securities, except from a trust described under “— Legal Defeasance and Covenant Defeasance,” if
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a default in the payment of all or any portion of the obligations on any designated senior debt (“payment default”) occurs that has not been cured or waived, or |
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any other default occurs and is continuing with respect to designated senior debt pursuant to which the maturity thereof may be accelerated (“non-payment default”) and, solely with respect to this
clause, the trustee for the subordinated debt securities receives a notice of the default (a “payment blockage notice”) from the trustee or other representative for the holders of such designated senior debt. |
Cash payments on subordinated debt securities will be resumed (a) in the case of a payment default, upon the date on which such default
is cured or waived, and (b) in case of a nonpayment default, the earliest of the date on which such nonpayment default is cured or waived, the termination of the payment blockage period by written notice to the trustee for the subordinated debt
securities from the trustee or other representative for the holders of such designated senior debt, the payment in full of such designated senior debt or 179 days after the date on which the applicable payment blockage notice is received. No new
payment blockage period may be commenced unless and until 360 days have elapsed since the date of commencement of the payment blockage period resulting from the immediately prior payment blockage notice. No nonpayment default in respect of
designated senior debt that existed or was continuing on the date of delivery of any payment blockage notice to the trustee for the subordinated debt securities will be, or be made, the basis for a subsequent payment blockage notice unless such
default shall have been cured or waived for a period of no less than 90 consecutive days.
Upon any payment or distribution of our assets
or securities (other than with the money, securities or proceeds held under any defeasance trust established in accordance with the subordinated indenture) in connection with any dissolution or winding up or total or partial liquidation or
reorganization of us, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership or other proceedings or other marshalling of assets for the benefit of creditors, all amounts due or to become due upon all senior debt shall first be
paid in full, in cash or cash equivalents, before the holders of the subordinated debt securities or the trustee on their behalf shall be entitled to receive any payment by or on behalf of us on account of the subordinated debt securities, or any
payment to acquire any of the subordinated debt securities for cash, property or securities, or any distribution with respect to the subordinated debt securities of any cash, property or securities. Before any payment may be made by, or on behalf
of, us on any subordinated debt security (other than with the money, securities or proceeds held under any defeasance trust established in accordance with the subordinated indenture) in connection with any such dissolution, winding up, liquidation
or reorganization, any payment or distribution of our assets or securities, to which the holders of subordinated debt securities or the trustee on their behalf would be entitled, shall be made by us or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other similar Person making such payment or distribution, or by the holders or the trustee if received by them or it, directly to the holders of senior debt or their representatives or to any trustee or trustees under
any indenture pursuant to which any such senior debt may have been issued, as their respective interests appear, to the extent necessary to pay all such senior debt in full, in cash or cash equivalents, after giving effect to any concurrent payment,
distribution or provision therefor to or for the holders of such senior debt.
As a result of these subordination provisions, in the event
of our liquidation, bankruptcy, reorganization, insolvency, receivership or similar proceeding or an assignment for the benefit of our creditors or a marshalling of our assets or liabilities, holders of subordinated debt securities may receive
ratably less than other creditors.
Payment and Transfer
Principal, interest and any premium on fully registered debt securities will be paid at designated places. Payment will be made by check mailed
to the persons in whose names the debt securities are registered on days specified in the indentures or any prospectus supplement. Debt securities payments in other forms will be paid at a place designated by us and specified in a prospectus
supplement.
Fully registered debt securities may be transferred or exchanged at the office of the trustee or at any other office or
agency maintained by us for such purposes, without the payment of any service charge except for any tax or governmental charge.
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Global Securities
The debt securities of a series may be issued in whole or in part in the form of one or more global certificates that we will deposit with a
depositary identified in the applicable prospectus supplement. Unless and until it is exchanged in whole or in part for the individual debt securities that it represents, a global security may not be transferred except as a whole:
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by the applicable depositary to a nominee of the depositary; |
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by any nominee to the depositary itself or another nominee; or |
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by the depositary or any nominee to a successor depositary or any nominee of the successor. |
We will describe the specific terms of the depositary arrangement with respect to a series of debt securities in the applicable prospectus
supplement. We anticipate that the following provisions will generally apply to depositary arrangements.
When we issue a global
security in registered form, the depositary for the global security or its nominee will credit, on its book-entry registration and transfer system, the respective principal amounts of the individual debt securities represented by that global
security to the accounts of persons that have accounts with the depositary (“participants”). Those accounts will be designated by the dealers, underwriters or agents with respect to the underlying debt securities or by us if those
debt securities are offered and sold directly by us. Ownership of beneficial interests in a global security will be limited to participants or persons that may hold interests through participants. For interests of participants, ownership of
beneficial interests in the global security will be shown on records maintained by the applicable depositary or its nominee. For interests of persons other than participants, that ownership information will be shown on the records of participants.
Transfer of that ownership will be effected only through those records. The laws of some states require that certain purchasers
of securities take physical delivery of securities in definitive form. These limits and laws may impair our ability to transfer beneficial interests in a global security.
As long as the depositary for a global security, or its nominee, is the registered owner of that global security, the depositary or nominee
will be considered the sole owner or holder of the debt securities represented by the global security for all purposes under the applicable indenture. Except as provided below, owners of beneficial interests in a global security:
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will not be entitled to have any of the underlying debt securities registered in their names; |
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will not receive or be entitled to receive physical delivery of any of the underlying debt securities in definitive form; and |
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will not be considered the owners or holders under the indenture relating to those debt securities. |
Payments of the principal of, any premium on and any interest on individual debt securities represented by a global security registered in the
name of a depositary or its nominee will be made to the depositary or its nominee as the registered owner of the global security representing such debt securities. Neither we, the trustee for the debt securities, any paying agent nor the registrar
for the debt securities will be responsible for any aspect of the records relating to or payments made by the depositary or any participants on account of beneficial interests in the global security.
We expect that the depositary or its nominee, upon receipt of any payment of principal, any premium or interest relating to a global security
representing any series of debt securities, immediately will credit participants’ accounts with the payments. Those payments will be credited in amounts proportional to the respective beneficial interests of the participants in the principal
amount of the global security as shown on the records of the depositary or its nominee. We also expect that payments by participants to owners of beneficial interests in the global security held
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through those participants will be governed by standing instructions and customary practices. This is now the case with securities held for the accounts of customers registered in “street
name.” Those payments will be the sole responsibility of those participants.
If the depositary for a series of debt securities is at
any time unwilling, unable or ineligible to continue as depositary and we do not appoint a successor depositary within 90 days, we will issue individual debt securities of that series in exchange for the global security or securities representing
that series. In addition, we may at any time in our sole discretion determine not to have any debt securities of a series represented by one or more global securities. In that event, we will issue individual debt securities of that series in
exchange for the global security or securities. Furthermore, if we specify, an owner of a beneficial interest in a global security may, on terms acceptable to us, the trustee and the applicable depositary, receive individual debt securities of that
series in exchange for those beneficial interests. The foregoing is subject to any limitations described in the applicable prospectus supplement. In any such instance, the owner of the beneficial interest will be entitled to physical delivery of
individual debt securities equal in principal amount to the beneficial interest and to have the debt securities registered in its name. Those individual debt securities will be issued in any authorized denominations.
Governing Law
Each indenture and the
debt securities will be governed by and construed in accordance with the laws of the State of New York.
Information Concerning the Trustee
U.S. Bank National Association will be the trustee under the indentures. A successor trustee may be appointed in accordance with the terms of
the indentures.
The indentures and the provisions of the Trust Indenture Act incorporated by reference therein will contain certain
limitations on the rights of the trustee, should it become a creditor of us, to obtain payment of claims in certain cases, or to realize on certain property received in respect of any such claim as security or otherwise. The trustee will be
permitted to engage in other transactions; however, if it acquires any conflicting interest (within the meaning of the Trust Indenture Act), it must eliminate such conflicting interest or resign.
A single banking or financial institution may act as trustee with respect to both the subordinated indenture and the senior indenture. If this
occurs, and should a default occur with respect to either the subordinated debt securities or the senior debt securities, such banking or financial institution would be required to resign as trustee under one of the indentures within 90 days of such
default, pursuant to the Trust Indenture Act, unless such default were cured, duly waived or otherwise eliminated.
DESCRIPTION OF GUARANTEES OF DEBT SECURITIES
Our subsidiaries may issue full and unconditional guarantees on an unsecured,
unsubordinated basis with respect to senior debt securities that we offer in any prospectus supplement and may issue full and unconditional guarantees on an unsecured, subordinated basis with respect to subordinated debt securities that we offer in
any prospectus supplement. The guarantee of senior debt securities will rank equally in right of payment with all of the unsecured and unsubordinated indebtedness of such subsidiary or subsidiaries. The guarantee of the subordinated debt securities
will be subordinated in right of payment to all such subsidiary’s or subsidiaries’ existing and future senior indebtedness (as defined in the related prospectus supplement), including any guarantee of senior debt securities, to the same
extent and in the same manner as the subordinated debt securities are subordinated to our senior indebtedness (as defined in the related prospectus supplement). Each guarantee will be issued under a supplement to an indenture. The prospectus
supplement relating to a particular issue of guarantees will describe the terms of those guarantees, including the following:
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the series of debt securities to which the guarantees apply; |
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whether the guarantees are secured or unsecured; |
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whether the guarantees are senior or subordinate to other guarantees or debt; |
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the terms under which the guarantees may be amended, modified, waived, released or otherwise terminated, if different from the provisions applicable to the guaranteed debt securities; and |
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any additional terms of the guarantees. |
The obligations of our subsidiaries under any such
guarantee will be limited as necessary to prevent the guarantee from constituting a fraudulent conveyance or fraudulent transfer under applicable law.
DESCRIPTION OF CAPITAL STOCK
Our authorized capital stock consists of 300,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of preferred
stock, par value $0.01 per share. The following describes our common stock, preferred stock, certificate of incorporation and bylaws. This description is a summary only. We encourage you to read the complete text of our certificate of incorporation
and bylaws, which we have filed as exhibits to the registration statement of which this prospectus is a part.
Common Stock
Each share of common stock entitles the holder to one vote on all matters on which holders are permitted to vote, including the election of
directors. There are no cumulative voting rights. Accordingly, holders of a majority of shares entitled to vote in an election of directors are able to elect all of the directors standing for election.
Subject to preferences that may be applicable to any outstanding preferred stock, the holders of the common stock share equally on a per share
basis any dividends when, as and if declared by the board of directors out of funds legally available for that purpose. If we are liquidated, dissolved or wound up, the holders of our common stock will be entitled to a ratable share of any
distribution to stockholders, after satisfaction of all of our liabilities and of the prior rights of any outstanding class of our preferred stock. Our common stock carries no preemptive or other subscription rights to purchase shares of our stock
and is not convertible, redeemable or assessable or entitled to the benefits of any sinking fund.
Preferred Stock
Our board of directors has the authority, without stockholder approval, to issue shares of preferred stock from time to time in one or more
series and to fix the number of shares and terms of each such series. The board may determine the designation and other terms of each series, including, among others:
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conversion and exchange rights; |
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liquidation preferences. |
The prospectus supplement relating to any series of preferred stock
we are offering will include specific terms relating to the offering and the name of any transfer agent for that series. We will file the form of the preferred stock with the SEC before we issue any of it, and you should read it for provisions that
may be important to you. The prospectus supplement will include some or all of the following terms:
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the title of the preferred stock; |
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the maximum number of shares of the series; |
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the dividend rate or the method of calculating the dividend, the date from which dividends will accrue and whether dividends will be cumulative; |
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any liquidation preference; |
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any optional redemption provisions; |
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any sinking fund or other provisions that would obligate us to redeem or purchase the preferred stock; |
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any terms for the conversion or exchange of the preferred stock; |
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any other preferences and relative, participating, optional or other special rights or any qualifications, limitations or restrictions on the rights of the shares. |
The issuance of preferred stock, while providing us with flexibility in connection with possible acquisitions and other corporate purposes,
could reduce the relative voting power of holders of our common stock. It could also affect the likelihood that holders of our common stock will receive dividend payments and payments upon liquidation.
The issuance of shares of capital stock could be used to discourage an attempt to obtain control of our company. For example, if, in the
exercise of its fiduciary obligations, our board of directors determined that a takeover proposal was not in the best interest of our stockholders, the board could authorize the issuance of preferred stock or common stock without stockholder
approval. The shares could be issued in one or more transactions that might prevent or make the completion of the change of control transaction more difficult or costly by:
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diluting the voting or other rights of the proposed acquiror or insurgent stockholder group; |
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creating a substantial voting block in institutional or other hands that might undertake to support the position of the incumbent board; or |
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effecting an acquisition that might complicate or preclude the takeover. |
In this regard, our
certificate of incorporation grants our board of directors broad power to establish the rights and preferences of the authorized and unissued preferred stock. Our board could establish one or more series of preferred stock that entitle holders to:
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vote separately as a class on any proposed merger or consolidation; |
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cast a proportionately larger vote together with our common stock on any transaction or for all purposes; |
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elect directors having terms of office or voting rights greater than those of other directors; |
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convert preferred stock into a greater number of shares of our common stock or other securities; |
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demand redemption at a specified price under prescribed circumstances related to a change of control of our company; or |
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exercise other rights designed to impede a takeover. |
Alternatively, a change of control
transaction deemed by the board to be in the best interest of our stockholders could be facilitated by issuing a series of preferred stock having sufficient voting rights to provide a required percentage vote of the stockholders.
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Certificate of Incorporation and Bylaws
Election and Removal of Directors
Our board of directors consists of between one and 16 directors, excluding any directors elected by holders of preferred stock pursuant to
provisions applicable in the case of defaults. The exact number of directors is fixed from time to time by resolution of the board. Our board of directors is divided into three classes serving staggered three-year terms, with only one class being
elected each year by our stockholders. At each annual meeting of stockholders, directors are elected to succeed the class of directors whose terms have expired. This system of electing and removing directors may discourage a third party from making
a tender offer or otherwise attempting to obtain control of our company, because it generally makes it more difficult for stockholders to replace a majority of the directors. In addition, no director may be removed except for cause, and directors
may be removed for cause by an affirmative vote of shares representing a majority of the shares then entitled to vote at an election of directors. Any vacancy occurring on the board of directors and any newly created directorship may be filled only
by a majority of the remaining directors in office.
Stockholder Meetings
Our certificate of incorporation and our bylaws provide that, unless otherwise provided by the Delaware General Corporation Law, special
meetings of our stockholders may be called only by the chairman of our board of directors or a majority of the directors. Our certificate of incorporation and our bylaws specifically deny any power of any other person to call a special meeting.
Stockholder Action by Written Consent
Our certificate of incorporation provides that holders of our common stock are not able to act by written consent without a meeting, unless
such consent is unanimous.
Amendment of Certificate of Incorporation
The provisions of our certificate of incorporation described above under “— Election and Removal of Directors,” “—
Stockholder Meetings” and “— Stockholder Action by Written Consent” may be amended only by the affirmative vote of holders of at least 75% of the voting power of our outstanding shares of voting stock, voting together as a single
class. The affirmative vote of holders of at least a majority of the voting power of our outstanding shares of stock will generally be required to amend other provisions of our certificate of incorporation.
Amendment of Bylaws
Our bylaws may generally be altered, amended or repealed, and new bylaws may be adopted, with:
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the affirmative vote of a majority of directors present at any regular or special meeting of the board of directors called for that purpose, provided that any alteration, amendment or repeal of, or adoption of any bylaw
inconsistent with, specified provisions of the bylaws, including those related to special and annual meetings of stockholders, action of stockholders by written consent, classification of the board of directors, nomination of directors, special
meetings of directors, removal of directors, committees of the board of directors and indemnification of directors and officers, requires the affirmative vote of at least 75% of all directors in office at a meeting called for that purpose; or
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the affirmative vote of holders of 75% of the voting power of our outstanding shares of voting stock, voting together as a single class. |
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Other Limitations on Stockholder Actions
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Our bylaws also impose some procedural requirements on stockholders who wish to: |
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make nominations in the election of directors; |
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propose that a director be removed; |
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propose any repeal or change in our bylaws; or |
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propose any other business to be brought before an annual or special meeting of stockholders. |
Under these procedural requirements, in order to bring a proposal before a meeting of stockholders, a stockholder must deliver timely notice
of a proposal pertaining to a proper subject for presentation at the meeting to our corporate secretary along with the following:
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a description of the business or nomination to be brought before the meeting and the reasons for conducting such business at the meeting; |
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the stockholder’s name and address; |
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any material interest of the stockholder in the proposal; |
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the number of shares beneficially owned by the stockholder and evidence of such ownership; and |
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the names and addresses of all persons with whom the stockholder is acting in concert and a description of all arrangements and understandings with those persons, and the number of shares such persons beneficially own.
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To be timely, a stockholder must generally deliver notice:
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in connection with an annual meeting of stockholders, not less than 90 nor more than 120 days prior to the first anniversary of the date on which the annual meeting of stockholders was held in the immediately preceding
year, but in the event that the date of the annual meeting is more than 30 days before or more than 60 days after the anniversary date of the preceding annual meeting of stockholders, a stockholder notice will be timely if received by us not earlier
than the close of business on the 120th day prior to the annual meeting and not later than the close of business on the later of the 90th day prior to the annual meeting and the 10th day following the day on which we first publicly announce the date
of the annual meeting; or |
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in connection with the election of a director at a special meeting of stockholders, not less than 40 nor more than 60 days prior to the date of the special meeting, but in the event that less than 55 days’ notice
or prior public disclosure of the date of the special meeting of the stockholders is given or made to the stockholders, a stockholder notice will be timely if received by us not later than the close of business on the 10th day following the day on
which a notice of the date of the special meeting was mailed to the stockholders or the public disclosure of that date was made. |
In order to submit a nomination for our board of directors, a stockholder must also submit any information with respect to the nominee that we
would be required to include in a proxy statement, as well as some other information. If a stockholder fails to follow the required procedures, the stockholder’s proposal or nominee will be ineligible and will not be voted on by our
stockholders.
Limitation of Liability of Directors and Officers
Our certificate of incorporation provides that no director will be personally liable to us or our stockholders for monetary damages for breach
of fiduciary duty as a director, except as required by applicable law, as in effect from time to time. Currently, Delaware law requires that liability be imposed for the following:
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any breach of the director’s duty of loyalty to our company or our stockholders; |
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any act or omission not in good faith or which involved intentional misconduct or a knowing violation of law; |
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unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; and |
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any transaction from which the director derived an improper personal benefit. |
As a result,
neither we nor our stockholders have the right, through stockholders’ derivative suits on our behalf, to recover monetary damages against a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent
behavior, except in the situations described above.
Our bylaws provide that, to the fullest extent permitted by law, we will indemnify
any officer or director of our company against all damages, claims and liabilities arising out of the fact that the person is or was our director or officer, or served any other enterprise at our request as a director, officer, employee, agent or
fiduciary. We will reimburse the actual and reasonable expenses, including attorneys’ fees, incurred by a person indemnified by this provision when we receive an undertaking to reimburse such amounts if it is ultimately determined that the
person is not entitled to be indemnified by us. Amending this provision will not reduce our indemnification obligations relating to actions taken before an amendment. We have entered into indemnification agreements with each of our directors that
provide that we will indemnify the indemnitee against, and advance certain expenses relating to, liabilities incurred in the performance of such indemnitee’s duties on our behalf to the fullest extent permitted under Delaware law and our
bylaws.
Anti-Takeover Effects of Some Provisions
Some provisions of our certificate of incorporation and bylaws could make the following more difficult:
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acquisition of control of us by means of a proxy contest or otherwise, or |
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removal of our incumbent officers and directors. |
These provisions, as well as our ability to
issue preferred stock, are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We
believe that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that the benefits of this increased protection outweigh the
disadvantages of discouraging those proposals, because negotiation of those proposals could result in an improvement of their terms.
Delaware Business
Combination Statute
We have elected to be subject to Section 203 of the Delaware General Corporation Law, which regulates
corporate acquisitions. Section 203 prevents an “interested stockholder,” which is defined generally as a person owning 15% or more of a corporation’s voting stock, or any affiliate or associate of that person, from engaging in a
broad range of “business combinations” with the corporation for three years after becoming an interested stockholder unless:
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the board of directors of the corporation had previously approved either the business combination or the transaction that resulted in the stockholder’s becoming an interested stockholder; |
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upon completion of the transaction that resulted in the stockholder’s becoming an interested stockholder, that person owned at least 85% of the voting stock of the corporation outstanding at the time the
transaction commenced, other than statutorily excluded shares; or |
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following the transaction in which that person became an interested stockholder, the business combination is approved by the board of directors of the corporation and holders of at least two-thirds of the outstanding
voting stock not owned by the interested stockholder. |
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Under Section 203, the restrictions described above also do not apply to specific business
combinations proposed by an interested stockholder following the announcement or notification of designated extraordinary transactions involving the corporation and a person who had not been an interested stockholder during the previous three years
or who became an interested stockholder with the approval of a majority of the corporation’s directors, if such extraordinary transaction is approved or not opposed by a majority of the directors who were directors prior to any person becoming
an interested stockholder during the previous three years or were recommended for election or elected to succeed such directors by a majority of such directors.
Section 203 may make it more difficult for a person who would be an interested stockholder to effect various business combinations with a
corporation for a three-year period. Section 203 also may have the effect of preventing changes in our management and could make it more difficult to accomplish transactions which our stockholders may otherwise deem to be in their best
interests.
Listing of Common Stock
Our common stock is listed on the NASDAQ Global Select Market under the symbol “HERO.”
Transfer Agent and Registrar
The
transfer agent and registrar for our common stock is American Stock Transfer & Trust Company.
DESCRIPTION OF WARRANTS
We may issue warrants to purchase any combination of debt securities, common stock, preferred stock or other securities. We may issue warrants
independently or together with other securities. Warrants sold with other securities may be attached to or separate from the other securities. We will issue warrants under one or more warrant agreements between us and a warrant agent that we will
name in the prospectus supplement.
The prospectus supplement relating to any warrants we are offering will include specific terms
relating to the offering. We will file the form of any warrant agreement with the SEC, and you should read the warrant agreement for provisions that may be important to you. The prospectus supplement will include some or all of the following terms:
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the title of the warrants; |
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the aggregate number of warrants offered; |
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the price at which, and the currency or currencies in which the securities purchasable upon exercise of, such warrants may be purchased; |
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the date on which the right to exercise such warrants shall commence and the date on which such right shall expire; |
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if applicable, the minimum or maximum amount of such warrants which may be exercised at any one time; |
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if applicable, the designation and terms of the securities with which such warrants are issued and the number of such warrants issued with each such security; |
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if applicable, a discussion of any material U.S. federal income tax considerations; and |
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any other terms of such warrants. |
DESCRIPTION OF RIGHTS
The following description, together with the additional information we include in any applicable prospectus supplement, summarizes the general
features of the rights that we may offer under this prospectus. We may issue
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rights to our stockholders to purchase shares of our common stock and/or any of the other securities offered hereby. Each series of rights will be issued under a separate rights agreement to be
entered into between us and a bank or trust company, as rights agent. When we issue rights, we will provide the specific terms of the rights and the applicable rights agreement in a prospectus supplement. Because the terms of any rights we offer
under a prospectus supplement may differ from the terms we describe below, you should rely solely on information in the applicable prospectus supplement if that summary is different from the summary in this prospectus. We will incorporate by
reference into the registration statement of which this prospectus is a part the form of rights agreement that describes the terms of the series of rights we are offering before the issuance of the related series of rights.
If we offer any series of rights, certain terms of that series of rights will be described in the applicable prospectus supplement, including,
without limitation, the following:
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the date of determining the stockholders entitled to the rights distribution; |
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the securities purchasable upon exercise of the rights; |
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the aggregate number of rights issued; |
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the date, if any, on and after which the rights will be separately transferable; |
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the date on which the right to exercise the rights will commence, and the date on which the right will expire; |
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a discussion of certain United States federal income tax considerations applicable to the rights; and |
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any other terms of the rights, including terms, procedures and limitations relating to the distribution, exchange and exercise of the rights. |
Each right will entitle the holder thereof to purchase for cash the securities at the exercise price provided in the applicable prospectus
supplement. Rights may be exercised at any time up to the close of business on the expiration date for the rights provided in the applicable prospectus supplement. After the close of business on the expiration date, all unexercised rights will be
void.
Holders may exercise rights as described in the applicable prospectus supplement. Upon receipt of payment and the rights
certificate properly completed and duly executed at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement, we will, as soon as practicable, forward the securities purchasable upon exercise of the
rights. If fewer than all of the rights issued in any rights offering are exercised, we may offer any unsubscribed securities directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination of such
methods, including pursuant to standby underwriting arrangements, as described in the applicable prospectus supplement.
DESCRIPTION OF PURCHASE CONTRACTS
The following description, together with the additional information we include in any
applicable prospectus supplement, summarizes the general features of the purchase contracts that we may offer under this prospectus. While the features we have summarized below will generally apply to any future purchase contracts we may offer under
this prospectus, we will describe the particular terms of any purchase contracts that we may offer in more detail in the applicable prospectus supplement. The specific terms of any purchase contracts may differ from the description provided below as
a result of negotiations with third parties in connection with the issuance of those purchase contracts, as well as for other reasons. Because the terms of any purchase contracts we offer under a prospectus supplement may differ from the terms we
describe below, you should rely solely on information in the applicable prospectus supplement if that summary is different from the summary in this prospectus.
We will incorporate by reference into the registration statement of which this prospectus is a part the form of any purchase contract that we
may offer under this prospectus before the sale of the related purchase contract. We
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urge you to read the applicable prospectus supplements related to the specific purchase contracts being offered, as well as the complete instruments that contain the terms of the securities that
are subject to those purchase contracts. Certain of those instruments, or forms of those instruments, have been filed as exhibits to the registration statement of which this prospectus is a part, and supplements to those instruments or forms may be
incorporated by reference into the registration statement of which this prospectus is a part from reports we file with the SEC.
We may
issue purchase contracts, including contracts obligating holders to purchase from us, and for us to sell to holders, a specific or variable number of our, or an unaffiliated entity’s, securities at a future date or dates. Alternatively, the
purchase contracts may obligate us to purchase from holders, and obligate holders to sell to us, a specific or varying number of our securities. When we issue purchase contracts, we will provide the specific terms of the purchase contracts in a
prospectus supplement. A copy of the applicable form of purchase contract will be included as an exhibit to a report we file with the SEC incorporated by reference herein.
If we offer any purchase contracts, certain terms of that series of purchase contracts will be described in the applicable prospectus
supplement, including, without limitation, the following:
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the price of the securities or other property subject to the purchase contracts (which may be determined by reference to a specific formula described in the purchase contracts); |
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whether the purchase contracts are issued separately, or as a part of units each consisting of a purchase contract and one or more of our other securities or securities of an unaffiliated entity, including U.S. Treasury
securities, securing the holder’s obligations under the purchase contract; |
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any requirement for us to make periodic payments to holders or vice versa, and whether the payments are unsecured or pre-funded; |
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any provisions relating to any security provided for the purchase contracts; |
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whether the purchase contracts obligate the holder or us to purchase or sell, or both purchase and sell, the securities subject to purchase under the purchase contract, and the nature and amount of each of those
securities, or the method of determining those amounts; |
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whether the purchase contracts are to be prepaid or not; |
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whether the purchase contracts are to be settled by delivery, or by reference or linkage to the value, performance or level of the securities subject to purchase under the purchase contract; |
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any acceleration, cancellation, termination or other provisions relating to the settlement of the purchase contracts; |
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a discussion of certain United States federal income tax considerations applicable to the purchase contracts; |
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whether the purchase contracts will be issued in fully registered or global form; and |
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any other terms of the purchase contracts and any securities subject to such purchase contracts. |
DESCRIPTION OF DEPOSITARY SHARES
The following summarizes some of the general provisions of the deposit agreement which we may enter into with a bank or trust company and of
the depositary shares and depositary receipts. You should read the particular terms of preferred stock which constitutes the depositary shares and any depositary receipts that are offered by us and any deposit agreement relating to a particular
series of preferred stock which will be described in more detail in a prospectus supplement. The prospectus supplement will also state whether any of the generalized provisions summarized below do not apply to the depositary shares or depositary
receipts being offered. The deposit agreement, including the form of depositary receipt, will be filed as an exhibit to the registration statement of which this prospectus forms a part in connection with any offering of depositary shares.
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General
We may, at our option, elect to offer fractional shares or multiple shares of preferred stock, rather than whole individual shares of preferred
stock, in the form of depositary shares. Each depositary share will represent a fraction or multiple of a share of a particular series of preferred stock, the “depositary shares,” and will be evidenced by depositary receipts issued
pursuant to the deposit agreement. Depositary receipts will be distributed to those persons purchasing the fractional or multiple shares of preferred stock in accordance with the terms of the prospectus supplement.
The shares of any series of preferred stock represented by depositary shares will be deposited under a deposit agreement between us and a bank
or trust company we select having its principal office in the United States, as preferred stock depositary. Each owner of a depositary share will be entitled to any the rights and preferences of the underlying preferred stock, including dividend,
voting, redemption, conversion, and liquidation rights, in proportion to the applicable fraction of a share of preferred stock represented by the depositary share.
Dividends and Other Distributions
The
preferred stock depositary will distribute all cash dividends or other cash distributions received in respect of the deposited preferred stock to the record holders of depositary shares relating to the underlying preferred stock in proportion to the
number of the depositary shares owned by the holders.
The preferred stock depositary will distribute any property received by it other
than cash to the record holders of depositary shares entitled to these distributions. If the preferred stock depositary determines that it is not feasible to make a distribution, it may, with our approval, sell the property and distribute the net
proceeds from the sale to the holders of the depositary shares.
Redemption of Preferred Stock
If we redeem a series of preferred stock represented by depositary shares, the depositary shares will be redeemed from the proceeds received by
the preferred stock depositary resulting from the redemption, in whole or in part, of the applicable series of preferred stock. The depositary shares will be redeemed by the preferred stock depositary at a price per depositary share equal to the
applicable fraction or multiple of the redemption price per share payable in respect of the depositary shares of preferred stock so redeemed. The preferred stock depositary will redeem as of the same date the number of depositary shares representing
shares of preferred stock so redeemed. If fewer than all the depositary shares are to be redeemed, the depositary shares to be redeemed will be selected by the preferred stock depositary by lot or ratably or by any other equitable method as the
preferred stock depositary decides.
Withdrawal of Preferred Stock
Unless the related depositary shares have previously been called for redemption, any holder of depositary shares may receive the number of
whole shares of the related series of preferred stock and any money or other property represented by those depositary shares after surrendering the related depositary receipts at the corporate trust office of the preferred stock depositary. Holders
of depositary shares making these withdrawals will be entitled to receive whole shares of preferred stock on the basis set forth in the prospectus supplement for that series of preferred stock.
However, holders of whole shares of preferred stock will not be entitled to deposit that preferred stock under the deposit agreement or to
receive depositary shares for that preferred stock after withdrawal. If the depositary shares surrendered by the holder in connection with withdrawal exceed the number of depositary shares that represent the number of whole shares of preferred stock
to be withdrawn, the preferred stock depositary will deliver to that holder at the same time new depositary receipts evidencing the excess number of depositary shares.
26
Voting Deposited Preferred Stock
When the preferred stock depositary receives notice of any meeting at which the holders of any series of deposited preferred stock are entitled
to vote, the preferred stock depositary will mail the information contained in the notice to the record holders of the depositary shares relating to the applicable series of preferred stock. Each record holder of the depositary shares on the record
date will be entitled to instruct the preferred stock depositary to vote the amount of the preferred stock represented by the holder’s depositary shares. To the extent possible, the preferred stock depositary will vote the amount of the series
of preferred stock represented by depositary shares in accordance with the instructions it receives.
We will agree to take all reasonable
actions that the preferred stock depositary determines are necessary to enable the preferred stock depositary to vote as instructed. The preferred stock depositary will vote all shares of any series of preferred stock held by it proportionately with
instructions received if it does not receive specific instructions from the holders of depositary shares representing that series of preferred stock.
Amendment and Termination of the Deposit Agreement
The form of depositary receipt evidencing the depositary shares and any provision of the deposit agreement may at any time be amended by
agreement between us and the preferred stock depositary. However, any amendment that imposes additional charges or materially and adversely alters the existing rights of the holders of depositary shares will not be effective unless the amendment has
been approved by the holders of at least a majority of the affected depositary shares then outstanding. Holders who retain their depositary shares after the amendment becomes effective will be deemed to agree to the amendment and will be bound by
the amended deposit agreement. The deposit agreement will automatically terminate if:
| |
• |
|
all outstanding depositary shares have been redeemed; |
| |
• |
|
each share of preferred stock deposited with the preferred stock depositary has been converted into or exchanged for common stock; or |
| |
• |
|
a final distribution in respect of the preferred stock has been made to the holders of depositary shares in connection with any liquidation, dissolution or winding up of the Company. |
We may terminate the deposit agreement at any time and the preferred stock depositary will give notice of that termination to the record
holders of all outstanding depositary receipts not less than 30 days prior to the termination date. In that event, the preferred stock depositary will deliver or make available for delivery to holders of depositary shares, upon surrender of the
related depositary receipts, the number of whole or fractional shares of the related series of preferred stock as are represented by those depositary shares.
Charges of Preferred Stock Depositary; Taxes and Other Governmental Charges
We will pay all fees, charges and expenses of the preferred stock depositary or any agent of the preferred stock depositary or of any
registrar, except for any taxes and other governmental charges and except as provided in the deposit agreement. If the preferred stock depositary incurs fees, charges or expenses for which it is not otherwise liable at the election of a holder of
depositary shares, that holder will be liable for those fees, charges and expenses.
Resignation and Removal of Depositary
The preferred stock depositary may resign at any time by delivering to us notice of its intent to do so, and we may at any time remove the
preferred stock depositary. Any resignation or removal will take effect upon the appointment of a successor preferred stock depositary and its acceptance of the appointment. A successor preferred stock depositary must be appointed within 60 days
after delivery of the notice of resignation or removal and must be a bank or trust company having its principal office in the United States and having a combined capital and surplus of at least $50,000,000.
27
Miscellaneous
The preferred stock depositary will forward to the holders of the depositary shares all reports and communications from which we deliver to the
preferred stock depositary and which we are required to furnish to the holders of the deposited preferred stock.
Neither we nor the
preferred stock depositary will be liable if it is prevented or delayed by law or any circumstances beyond its control in performing its obligations under the deposit agreement. Our obligations and those of the preferred stock depositary under the
deposit agreement will be limited to performance with honest intentions of their duties under the agreement and they will not be obligated to prosecute or defend any legal proceeding in respect of any depositary shares, depositary receipts or shares
of preferred stock unless satisfactory indemnity is furnished. We and the preferred stock depositary may rely upon written advice of counsel or accountants, or upon information provided by holders of depositary shares or other persons believed to be
competent and on documents believed to be genuine.
DESCRIPTION OF UNITS
As specified in the applicable prospectus supplement, we may issue units consisting of two or more of the securities offered hereunder.
The applicable prospectus supplement will specify the following terms of any units in respect of which this prospectus is being delivered:
| |
• |
|
the terms of the units and of any of the securities comprising the units, including whether and under what circumstances the securities comprising the units may be traded separately; |
| |
• |
|
a description of the terms of any unit agreement governing the units; and |
| |
• |
|
a description of the provisions for the payment, settlement, transfer or exchange of the units. |
PLAN OF DISTRIBUTION
We may sell the securities in and outside the United States through underwriters or dealers, directly to purchasers, through agents or through
a combination of these methods.
If we use underwriters in the sale of securities, the underwriters will acquire the securities for their
own account. The underwriters may resell the securities from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or at varying prices determined at the time of sale. Underwriters may offer
securities to the public either through underwriting syndicates represented by one or more managing underwriters or directly by one or more firms acting as underwriters. Unless we inform you otherwise in the prospectus supplement, the obligations of
the underwriters to purchase the securities will be subject to conditions, and the underwriters will be obligated to purchase all the securities if they purchase any of them. The underwriters may change from time to time any public offering price
and any discounts or concessions allowed or reallowed or paid to dealers.
During and after an offering through underwriters, the
underwriters may purchase and sell the securities in the open market. These transactions may include overallotment and stabilizing transactions and purchases to cover syndicate short positions created in connection with the offering. The
underwriters may also impose a penalty bid, whereby selling concessions allowed to syndicate members or other broker-dealers for the offered securities sold for their account may be reclaimed by the syndicate if such offered securities are
repurchased by the syndicate in stabilizing or covering transactions. These activities may stabilize, maintain or otherwise affect the market price of the offered securities, which may be higher than the price that might otherwise prevail in the
open market. If commenced, these activities may be discontinued at any time.
28
If we use dealers in the sale of securities, we will sell the securities to them as principals.
They may then resell those securities to the public at varying prices determined by the dealers at the time of resale. The dealers participating in any sale of the securities may be deemed to be underwriters within the meaning of the Securities Act
of 1933, as amended, or the Securities Act, with respect to any sale of those securities. We will include in the prospectus supplement the names of the dealers and the terms of the transaction.
We may sell the securities directly. In that event, no underwriters or agents would be involved. We may also sell the securities through
agents designated from time to time. In the prospectus supplement, we will name any agent involved in the offer or sale of the securities, and we will describe any commissions payable by us to the agent. Unless we inform you otherwise in the
prospectus supplement, any agent will agree to use its reasonable best efforts to solicit purchases for the period of its appointment.
Underwriters or agents could make sales in privately negotiated transactions and/or any other method permitted by law, including sales deemed
to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act, which includes sales made directly on or through the NASDAQ Global Select Market, the existing trading market for our shares, or sales made to
or through a market maker other than on an exchange. Underwriters and agents who participate in any at-the-market offerings will be described in the prospectus supplement relating thereto.
We may sell the securities directly to institutional investors or others who may be deemed to be underwriters within the meaning of the
Securities Act with respect to any sale of those securities. We will describe the terms of any such sales in the prospectus supplement.
If we so indicate in the prospectus supplement, we may authorize agents, underwriters or dealers to solicit offers from certain types of
institutions to purchase securities from us at the public offering price under delayed delivery contracts. These contracts would provide for payment and delivery on a specified date in the future. The contracts would be subject only to those
conditions described in the prospectus supplement. The prospectus supplement will describe the commission payable for solicitation of those contracts.
We may offer and sell any of the securities in connection with a remarketing upon their purchase, in accordance with a redemption or repayment
by their terms or otherwise, by one or more remarketing firms acting as principals for their own accounts or as our agents. We will identify any remarketing firm, the terms of any remarketing agreement and the compensation to be paid to the
remarketing firm in the prospectus supplement. Remarketing firms may be deemed underwriters under the Securities Act.
We may enter into
derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third
parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third parties may use securities pledged by us or borrowed from us or others to settle those sales or
to close out any related open borrowings of stock, and may use securities received from us in settlement of those derivatives to close out any related open borrowings of stock. The third parties in these sale transactions will be underwriters and
will be identified in the applicable prospectus supplement or in a post-effective amendment to the registration statement of which this prospectus forms a part.
We may have agreements with the agents, dealers and underwriters to indemnify them against civil liabilities, including liabilities under the
Securities Act, or to contribute with respect to payments that the agents, dealers or underwriters may be required to make. Agents, dealers and underwriters may engage in transactions with us or perform services for us in the ordinary course of
their businesses.
LEGAL MATTERS
The validity of the offered securities and other matters in connection with any offering of the securities will be passed upon for us by
Andrews Kurth LLP, Houston, Texas. Any underwriters will be advised about legal matters relating to any offering by their own legal counsel.
29
EXPERTS
The consolidated financial statements of Hercules Offshore, Inc. appearing in Hercules Offshore, Inc.’s Annual Report (Form 10-K) for the
year ended December 31, 2014 including the schedule appearing therein, and the effectiveness of Hercules Offshore, Inc.’s internal control over financial reporting as of December 31, 2014, have been audited by Ernst & Young
LLP, independent registered public accounting firm, as set forth in their reports thereon included therein, and incorporated herein by reference. Such financial statements are, and audited financial statements to be included in subsequently filed
documents will be, incorporated herein in reliance upon the reports of Ernst & Young LLP pertaining to such financial statements and the effectiveness of our internal control over financial reporting as of the respective dates (to the
extent covered by consents filed with the Securities and Exchange Commission) given on the authority of such firm as experts in accounting and auditing.
30
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The following table sets forth expenses payable by us in connection with the issuance and distribution of the securities being registered.
|
|
|
|
|
| SEC registration fee |
|
$ |
46,480 |
|
| Printing expenses |
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|
† |
|
| Legal fees and expenses |
|
|
† |
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| Accounting fees and expenses |
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|
† |
|
| Fees and expenses of trustee and counsel |
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|
† |
|
| Rating agency fees |
|
|
† |
|
| Miscellaneous |
|
|
† |
|
|
|
|
|
|
| Total |
|
|
† |
|
|
|
|
|
|
| † |
Estimated expenses are not presently known. The foregoing sets forth the general categories of expenses (other than underwriting discounts and commissions) that we anticipate we will incur in connection with the
offering of securities under this Registration Statement. An estimate of the aggregate expenses in connection with the issuance and distribution of the securities being offered will be included in the applicable prospectus supplement.
|
Item 15. Indemnification of Directors and Officers
Hercules Offshore Inc. is incorporated under the laws of the State of Delaware. Subsection (a) of Section 145 of the General
Corporation Law of the State of Delaware empowers a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the
corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him or her in connection with such action, suit or proceeding if he or she acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.
Subsection (b) of
Section 145 empowers a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor
by reason of the fact that such person acted in any of the capacities set forth above, against expenses (including attorneys’ fees) actually and reasonably incurred by him or her in connection with the defense or settlement of such action or
suit if he or she acted in good faith and in a manner that he or she reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification may be made in respect of any claim, issue or matter as to
which such person shall have been made to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of
liability but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
Section 145 further provides that to the extent a director or officer of a corporation has been successful on the merits or otherwise in
the defense of any action, suit or proceeding referred to in subsections (a) and (b) of Section 145 in the defense of any claim, issue or matter therein, he or she shall be indemnified against expenses (including attorneys’ fees)
actually and reasonably incurred by him or her in connection therewith; that indemnification provided for by Section 145 shall not be deemed exclusive of any other rights to which the indemnified party may
II-1
be entitled; that indemnification provided for by Section 145 shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of such person’s heirs, executors and administrators; and empowers the corporation to purchase and maintain insurance on behalf of a director or officer of the corporation against any liability
asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such whether or not the corporation would have the power to indemnify him or her against such liabilities under Section 145.
Our amended and restated by-laws provide that its directors and officers shall be indemnified against liabilities arising from their
service as directors or officers to the fullest extent permitted by law, which generally requires that the individual act in good faith and in a manner he or she reasonably believes to be in or not opposed to the Company’s best interests.
Section 102(b)(7) of the General Corporation Law of the State of Delaware provides that a certificate of incorporation may contain a
provision eliminating or limiting the personal liability of a director to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director provided that such provision shall not eliminate or limit the liability of
a director (i) for any breach of the director’s duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law,
(iii) under Section 174 of the Delaware General Corporation Law or (iv) for any transaction from which the director derived an improper personal benefit. In accordance with the Section 102(b)(7) of the General Corporation Law of
the State of Delaware, the Company’s certificate of incorporation contains a provision that generally eliminates the personal liability of directors for monetary damages for breaches of their fiduciary duty, subject to limitations of
Section 102(b)(7).
Delaware law also provides that a corporation may purchase and maintain insurance on behalf of any person who is
or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation or other entity, against any liability asserted against and
incurred by such person, whether or not the corporation would have the power to indemnify such person against such liability. We will maintain, at our expense, an insurance policy that insures our officers and directors, subject to customary
exclusions and deductions, against specified liabilities that may be incurred in those capacities. In addition, we have entered into indemnification agreements with each of our directors that provide that we will indemnify the indemnitee against,
and advance certain expenses relating to, liabilities incurred in the performance of such indemnitee’s duties on our behalf to the fullest extent permitted under Delaware law and our bylaws.
Insofar as indemnification for liabilities arising under the Securities Act, may be permitted to directors, officers or persons controlling
the registrant pursuant to the foregoing provisions, the registrant has been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
Item 16. Exhibits***
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| Exhibit
No. |
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Description |
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| 4.1 |
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— |
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Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Hercules’ Current Report on Form 8-K dated May 18, 2012 (File No. 000-51582)). |
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| 4.2 |
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— |
|
Amendment to Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Hercules’ Current Report on Form 8-K dated May 16, 2014 (File No. 000-51582)) |
|
|
|
| 4.3 |
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— |
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Amended and Restated Bylaws (effective December 31, 2009) (incorporated by reference to Exhibit 3.1 to Hercules’ Current Report on Form 8-K dated December 8, 2009 (File No. 000-51582)). |
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| 4.4 |
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— |
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Form of specimen common stock certificate (incorporated by reference to Exhibit 4.1 to Hercules’ Registration Statement on Form S-1/A dated October 12, 2005 (File No. 333-126457)). |
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| *4.5 |
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— |
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Form of Indenture between Hercules and the trustee thereunder (the “Senior Trustee”) in respect of senior debt securities. |
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| *4.6 |
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— |
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Form of Indenture between Hercules and the trustee thereunder (the “Subordinated Trustee”) in respect of subordinated debt securities. |
II-2
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| Exhibit
No. |
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Description |
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| †5.1 |
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— |
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Opinion of Andrews Kurth LLP with respect to legality of the securities offered hereby. |
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| **12.1 |
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— |
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Computation of ratio of earnings to fixed charges. |
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| **23.1 |
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— |
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Consent of Ernst & Young LLP. |
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| †23.2 |
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— |
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Consent of Andrews Kurth LLP (contained in Exhibit 5.1). |
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| †*24.1 |
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— |
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Powers of Attorney (included in Part II of this registration statement). |
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| *25.1 |
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— |
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Form T-1 Statement of Eligibility and Qualification of Trustee under Trust Indenture Act of 1939 regarding the senior debt securities. |
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| *25.2 |
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— |
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Form T-1 Statement of Eligibility and Qualification of Trustee under Trust Indenture Act of 1939 regarding the subordinated debt securities. |
| * |
Filed with the initial Registration Statement on Form S-3 (Registration No. 333-192970) on December 20, 2013. |
| *** |
We will file as an exhibit to a Current Report on Form 8-K (i) any underwriting, remarketing or agency agreement relating to the securities offered hereby, (ii) the instruments setting forth the terms of any
debt securities, preferred stock, warrants, rights, purchase contracts, depositary shares or units (iii) any additional required opinions of counsel with respect to legality of the securities offered hereby and (iv) any required opinion of
counsel as to certain tax matters relative to the securities offered hereby. |
| † |
Filed with Amendment No. 1 to the Registration Statement on Form S-3 (Registration No. 333-192970) on March 2, 2015. |
Item 17. Undertakings
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration
statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the
most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with
the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the
effective registration statement; and
(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such information in the registration statement; provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) do not apply if the information required to be
included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
II-3
(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of
determining liability under the Securities Act of 1933 to any purchaser:
(A) Each prospectus filed by the Registrant
pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and
(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in
reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and
included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule
430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective
date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
(5) That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the
initial distribution of the securities:
The undersigned Registrant undertakes that in a primary offering of securities of
the undersigned Registrant pursuant to the registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed
pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the
undersigned Registrant or used or referred to by the undersigned Registrant;
(iii) The portion of any other free writing
prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.
(b) The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
II-4
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
(d) The undersigned registrant hereby undertakes to supplement the prospectus,
after the expiration of the subscription period, to set forth the results of the subscription offer, the transactions by the underwriters during the subscription period, the amount of unsubscribed securities to be purchased by the underwriters, and
the terms of any subsequent reoffering thereof. If any public offering by the underwriters is to be made on terms differing from those set forth on the cover page of the prospectus, a post-effective amendment will be filed to set forth the terms of
such offering.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the undersigned Registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on March 5,
2015.
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| Hercules Offshore, Inc. |
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| By: |
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/s/ Troy L. Carson |
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Troy L. Carson |
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Senior Vice President and Chief Financial Officer |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has
been signed below by the following persons in the capacities indicated on March 5, 2015.
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| SIGNATURE |
|
TITLE |
|
|
| * |
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Chief Executive Officer, President and Director
(Principal Executive Officer) |
| John T. Rynd |
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| /s/ Troy L. Carson |
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Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer) |
| Troy L. Carson |
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| * |
|
Chairman of the Board |
| Thomas R. Bates, Jr. |
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|
|
| * |
|
Director |
| Thomas N. Amonett |
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|
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| * |
|
Director |
| Suzanne V. Baer |
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|
|
| * |
|
Director |
| Thomas M Hamilton |
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| * |
|
Director |
| Thomas J. Madonna |
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| * |
|
Director |
| F. Gardner Parker |
|
|
|
| * |
|
Director |
| Thierry Pilenko |
|
|
|
| * |
|
Director |
| Steven A. Webster |
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
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| By: |
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/s/ Troy L. Carson |
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Troy L. Carson |
|
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Attorney-in-Fact |
II-7
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, each of the undersigned Registrants certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on
March 5, 2015.
|
|
|
| HERO Holdings, Inc. THE
Offshore Drilling Company THE Onshore Drilling Company
TODCO Americas Inc. TODCO International
Inc. |
|
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| By: |
|
/s/ Troy L. Carson |
|
|
Name: Troy L. Carson |
|
|
Title: Vice President |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been
signed below by the following persons in the capacities indicated on March 5, 2015.
|
|
|
| SIGNATURE |
|
TITLE |
|
|
| /s/ Troy L. Carson |
|
Vice President and Director
(Principal Financial and Accounting Officer) |
| Troy L. Carson |
|
|
|
| * |
|
Secretary and Director |
| Beau M. Thompson |
|
|
|
|
|
|
| * |
|
President and Director
(Principal Executive Officer) |
| John T. Rynd |
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
|
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Troy L. Carson |
|
|
Attorney-in-Fact |
II-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, each of the undersigned Registrants certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on
March 5, 2015.
|
|
|
| Cliffs Drilling Company
Cliffs Drilling Trinidad L.L.C. |
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Name: Troy L. Carson |
|
|
Title: Vice President |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been
signed below by the following persons in the capacities indicated on March 5, 2015.
|
|
|
| SIGNATURE |
|
TITLE |
|
|
| /s/ Troy L. Carson
Troy L. Carson |
|
Vice President
(Principal Financial and Accounting Officer)
Director of Cliffs Drilling Company, the sole member of Cliffs Drilling Trinidad L.L.C. |
|
|
|
|
| * |
|
Secretary and Director of Cliffs Drilling Company, the sole member of Cliffs Drilling Trinidad L.L.C. |
| Beau M. Thompson |
|
|
|
|
|
|
| *
John T. Rynd |
|
President
(Principal Executive Officer)
Director of Cliffs Drilling Company, the sole member of Cliffs Drilling Trinidad L.L.C. |
|
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
|
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Troy L. Carson |
|
|
Attorney-in-Fact |
II-9
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, each of the undersigned Registrants certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on
March 5, 2015.
|
|
|
| Hercules Drilling Company, LLC
Hercules Offshore Services LLC SD Drilling
LLC |
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Name: Troy L. Carson |
|
|
Title: President |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been
signed below by the following persons in the capacities indicated on March 5, 2015.
|
|
|
| SIGNATURE |
|
TITLE |
|
|
| /s/ Troy L. Carson |
|
Vice President and Manager
(Principal Financial and Accounting Officer) |
| Troy L. Carson |
|
|
|
| * |
|
Secretary and Manager |
| Beau M. Thompson |
|
|
|
|
|
|
| * |
|
President and Manager
(Principal Executive Officer) |
| John T. Rynd |
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
|
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Troy L. Carson |
|
|
Attorney-in-Fact |
II-10
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, each of the undersigned Registrants certifies that it has reasonable
grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on
March 5, 2015.
|
|
|
| FDT LLC FDT Holdings
LLC |
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Name: Troy L. Carson |
|
|
Title: Vice President |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been
signed below by the following persons in the capacities indicated on March 5, 2015.
|
|
|
| SIGNATURE |
|
TITLE |
|
|
| *
John T. Rynd |
|
President and Chief Executive Officer
(Principal Executive Officer)
Manager of FDT Holdings LLC, the sole member of FDT LLC |
|
|
|
|
| /s/ Troy L. Carson
Troy L. Carson |
|
Vice President
(Principal Financial and Accounting Officer)
Manager of FDT Holdings LLC, the sole member of FDT LLC |
|
|
|
|
| * |
|
Secretary and Manager of FDT Holdings LLC, the sole member of FDT LLC |
| Beau M. Thompson |
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
|
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Troy L. Carson |
|
|
Attorney-in-Fact |
II-11
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the undersigned Registrant certifies that it has reasonable grounds to
believe that it meets all of the requirements for filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on March 5,
2015.
|
|
|
| Hercules Liftboat Company, LLC
Hercules Offshore Liftboat Company LLC |
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Name: Troy L. Carson |
|
|
Title: Vice President |
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been
signed below by the following persons in the capacities indicated on March 5, 2015.
|
|
|
| SIGNATURE |
|
TITLE |
|
|
| * |
|
President and Chief Executive Officer
(Principal Executive Officer) |
| Todd Pellegrin |
|
|
|
| /s/ Troy L. Carson |
|
Vice President and Manager
(Principal Financial and Accounting Officer) |
| Troy L. Carson |
|
|
|
| * |
|
Manager |
| John T. Rynd |
|
|
|
| * |
|
Secretary and Manager |
| Beau M. Thompson |
|
| * |
Mr. Troy L. Carson hereby signs this post-effective amendment to the Registration Statement on Form S-3 on behalf of the indicated persons for whom he is attorney-in-fact on March 5, 2015, pursuant to powers of
attorney previously granted in the Form S-3 of Hercules Offshore, Inc. filed with the Securities and Exchange Commission on December 20, 2013. |
|
|
|
| By: |
|
/s/ Troy L. Carson |
|
|
Troy L. Carson |
|
|
Attorney-in-Fact |
II-12
|
|
|
|
|
| Exhibit
No. |
|
|
|
Description |
|
|
|
| 4.1 |
|
— |
|
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to Hercules’ Current Report on Form 8-K dated May 18, 2012 (File No. 000-51582)). |
|
|
|
| 4.2 |
|
— |
|
Amendment to Certificate of Incorporation (incorporated by reference to Exhibit 3.2 to Hercules’ Current Report on Form 8-K dated May 16, 2014 (File No. 000-51582)) |
|
|
|
| 4.3 |
|
— |
|
Amended and Restated Bylaws (effective December 31, 2009) (incorporated by reference to Exhibit 3.1 to Hercules’ Current Report on Form 8-K dated December 8, 2009 (File No. 000-51582)). |
|
|
|
| 4.4 |
|
— |
|
Form of specimen common stock certificate (incorporated by reference to Exhibit 4.1 to Hercules’ Registration Statement on Form S-1/A dated October 12, 2005 (File No. 333-126457)). |
|
|
|
| *4.5 |
|
— |
|
Form of Indenture between Hercules and the trustee thereunder (the “Senior Trustee”) in respect of senior debt securities. |
|
|
|
| *4.6 |
|
— |
|
Form of Indenture between Hercules and the trustee thereunder (the “Subordinated Trustee”) in respect of subordinated debt securities. |
|
|
|
| †5.1 |
|
— |
|
Opinion of Andrews Kurth LLP with respect to legality of the securities offered hereby. |
|
|
|
| **12.1 |
|
— |
|
Computation of ratio of earnings to fixed charges. |
|
|
|
| **23.1 |
|
— |
|
Consent of Ernst & Young LLP. |
|
|
|
| †23.2 |
|
— |
|
Consent of Andrews Kurth LLP (contained in Exhibit 5.1). |
|
|
|
| †*24.1 |
|
— |
|
Powers of Attorney (included in Part II of this registration statement). |
|
|
|
| *25.1 |
|
— |
|
Form T-1 Statement of Eligibility and Qualification of Trustee under Trust Indenture Act of 1939 regarding the senior debt securities. |
|
|
|
| *25.2 |
|
— |
|
Form T-1 Statement of Eligibility and Qualification of Trustee under Trust Indenture Act of 1939 regarding the subordinated debt securities. |
| * |
Filed with the initial Registration Statement on Form S-3 (Registration No. 333-192970) on December 20, 2013. |
| *** |
We will file as an exhibit to a Current Report on Form 8-K (i) any underwriting, remarketing or agency agreement relating to the securities offered hereby, (ii) the instruments setting forth the terms of any
debt securities, preferred stock, warrants, rights, purchase contracts, depositary shares or units (iii) any additional required opinions of counsel with respect to legality of the securities offered hereby and (iv) any required opinion of
counsel as to certain tax matters relative to the securities offered hereby. |
| † |
Filed with Amendment No. 1 to the Registration Statement on Form S-3 (Registration No. 333-192970) on March 2, 2015. |
II-13
Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Computation of Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pretax loss from continuing operations before adjustment for noncontrolling interest and loss from equity investee |
|
$ |
(207,605 |
) |
|
$ |
(36,826 |
) |
|
$ |
(139,278 |
) |
|
$ |
(82,046 |
) |
|
$ |
(209,499 |
) |
| Capitalized interest |
|
|
(4,420 |
) |
|
|
(20,431 |
) |
|
|
(3,596 |
) |
|
|
— |
|
|
|
— |
|
| Amortization of capitalized interest |
|
|
1,685 |
|
|
|
941 |
|
|
|
632 |
|
|
|
631 |
|
|
|
631 |
|
| Fixed charges (see below) |
|
|
109,203 |
|
|
|
101,289 |
|
|
|
87,363 |
|
|
|
84,256 |
|
|
|
78,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total earnings |
|
$ |
(101,137 |
) |
|
$ |
44,973 |
|
|
$ |
(54,879 |
) |
|
$ |
2,841 |
|
|
$ |
(130,424 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Computation of Fixed Charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Estimated interest portion of rent |
|
$ |
5,641 |
|
|
$ |
5,022 |
|
|
$ |
4,595 |
|
|
$ |
4,298 |
|
|
$ |
4,384 |
|
| Interest expense, including amortization of debt expense |
|
|
99,142 |
|
|
|
75,836 |
|
|
|
79,172 |
|
|
|
79,958 |
|
|
|
82,941 |
|
| Realized losses on derivative instruments included in interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,881 |
) |
| Capitalized interest |
|
|
4,420 |
|
|
|
20,431 |
|
|
|
3,596 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fixed charges |
|
$ |
109,203 |
|
|
$ |
101,289 |
|
|
$ |
87,363 |
|
|
$ |
84,256 |
|
|
$ |
78,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratio of Earnings to Fixed Charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deficiency |
|
$ |
(210,340 |
)(a) |
|
$ |
(56,316 |
)(b) |
|
$ |
(142,242 |
)(c) |
|
$ |
(81,415 |
)(d) |
|
$ |
(208,868 |
)(e) |
| (a) |
Earnings as adjusted were insufficient to cover our fixed charges by $210.3 million for the year ended December 31, 2014. Pretax loss from continuing operations for the year ended December 31, 2014 includes $199.5
million in asset impairment charges. In addition, 2014 includes a $22.6 million net gain on the sale of cold-stacked drilling rigs and a $19.9 million charge related to the retirement of our 7.125% senior secured notes and issuance of our 6.75%
senior notes. |
| (b) |
Earnings as adjusted were insufficient to cover our fixed charges by $56.3 million for the year ended December 31, 2013. Pretax loss from continuing operations for the year ended December 31, 2013 includes
$114.2 million in asset impairment charges. In addition, 2013 includes an $11.5 million loss on the sale of Hercules 170, a $31.6 million gain for the Hercules 265 insurance settlement, a $14.9 million gain on equity investment and a
$29.3 million charge related to the redemption of our 10.5% Senior Notes and issuance of our 7.5% Senior Notes. |
| (c) |
Earnings as adjusted were insufficient to cover our fixed charges by $142.2 million for the year ended December 31, 2012. Pretax loss from continuing operations for the year ended December 31, 2012 includes
$108.2 million in asset impairment charges. In addition, 2012 includes an $18.4 million gain on the sale of Platform Rig 3, a $27.3 million gain for the Hercules 185 insurance settlement as well as $9.2 million in loss on
extinguishment of debt. |
| (d) |
Earnings as adjusted were insufficient to cover our fixed charges by $81.4 million for the year ended December 31, 2011. |
| (e) |
Earnings as adjusted were insufficient to cover our fixed charges by $208.9 million for the year ended December 31, 2010. Pretax loss from continuing operations for the year ended December 31, 2010 includes
$122.7 million in impairment of property and equipment charges. |
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the reference to our firm under the caption “Experts” in Amendment No. 2 to the Registration Statement (Form S-3 No. 333-192970) and related Prospectus of Hercules Offshore, Inc. for the registration of debt securities, preferred stock, common stock, warrants, rights, purchase contracts, depositary shares, guarantees, and
units and to the incorporation by reference therein of our reports dated March 2, 2015, with respect to the consolidated financial statements and schedule of Hercules Offshore, Inc. and the effectiveness of internal control over financial reporting
of Hercules Offshore, Inc. included in its Annual Report (Form 10-K) for the year ended December 31, 2014, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
Houston, Texas
March 5, 2015