The assets to be acquired will comprise of 20 jackup rigs located in the US Gulf of Mexico and related equipment, accounts receivable, cash and contractual rights.
Hercules will pay about $25m in cash and 22.3 million shares at $3.36 per share for the Seahawk stake.
The proceeds from the sale will be used by Seahawk to repay its debtor-in-possession loan secured in connection with its bankruptcy filing to support the business and provide liquidity prior to the closing of the transaction.
The company said that the amount of Hercules Offshore common shares issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25m, with the total cash consideration not to exceed $45m.
