Also Revises Financial Covenants Under Senior Secured Credit Facility
HOUSTON, June 2 /PRNewswire-FirstCall/ — ION Geophysical Corporation
(NYSE: IO) today announced that it has entered into definitive agreements with
certain institutional investors with respect to the private placement of 18.5
million shares of its common stock at a purchase price of $2.20 per share, for
gross proceeds of approximately $40.7 million. In addition, ION has completed
an amendment of its senior secured credit facility to loosen certain financial
covenants and enhance its financial flexibility.
The net proceeds received by ION in the private placement will be
approximately $38.0 million. ION will use the net proceeds, along with
approximately $3.0 million of cash on hand, to repay in full the bridge loan
under ION’s Bridge Loan Agreement dated as of December 30, 2008, with
Jefferies Finance LLC. Repaying the bridge loan prior to its maturity will
eliminate the need to pay certain duration payments associated with the loan
and will reduce ION’s cash interest expenses.
After the repayment of the bridge loan, ION will have outstanding
indebtedness of approximately $248.6 million, consisting of approximately
$115.6 million in five-year term borrowings and $98.0 million in revolving
credit facility borrowings under ION’s senior secured credit facility, $35.0
million of subordinated indebtedness outstanding under a five-year term
promissory note issued to one of ARAM’s selling shareholders as part of the
purchase of ARAM in September 2008, and various capital lease obligations.
The shares of common stock have not yet been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent a registration statement or exemption from registration.
This notice is issued pursuant to Rule 135c under the Securities Act of 1933
and shall not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state in which
such offer, solicitation or sale would be unlawful prior to the registration
or qualification under the securities laws of any such state.
ION is a leading provider of geophysical technology, services, and
solutions for the global oil & gas industry. ION’s offerings allow E&P
operators to obtain higher resolution images of the subsurface to reduce the
risk of exploration and reservoir development, and enable seismic contractors
to acquire geophysical data more efficiently. Additional information about ION
is available at www.iongeo.com.
ION (Investor relations)
Chief Financial Officer
Brian Hanson, +1 281.879.3672
ION (Media relations)
Director – Marketing Programs
Karen Abercrombie, +1 713.366.7281
SOURCE ION Geophysical Corporation
Web Site: http://www.iongeo.com