Our actual future results may differ materially due to a variety of factors. For information concerning factors that could cause our actual results to differ, we refer to you to the Risk Factors described in our Form 10-K on file with the Securities and Exchange Commission.
This call also includes certain non-GAAP financial measures. For a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures, we refer you to our earnings press release and a presentation slides for this call.
Okay. On slide three is our agenda for this morning. I’ll say some remarks and then Brent will review our financials in detail and then we’ll open up the phone lines to Q&A.Turning to slide four, we experienced higher utilization during the second quarter 2012, compared to the same period of 2011 as demand for our service in the Gulf of Mexico continues to slowly recover. Unfortunately, we had a tropical storm interruption, our second quarter operating results were negatively impacted by Tropical Storm Debby that moved to the Gulf during the latter half of June and order most of our equipment offshore during that timeframe. Although, our utilization strengthened, we’re still operating in a pretty competitive market as dayrates for our vessels remained under pressure. For the projects we did perform however, we did have a safe and solid project execution. On the balance sheet front, we paid down $18.2 million of our term loan in the second quarter. Additionally, we issued $86.3 million inconvertible debt in July. We used the net proceeds from this transaction to repay a portion of the term loan, with the remaining term loan balance outstanding at $49 million. We viewed this transaction -- this convertible debt transaction swapping secured debt with covenants with unsecured debt with no financial covenants at roughly the same coupon rate. This transaction provides us with long-term financial flexibility and improved liquidity which is important to us.
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