New Issue: CGG Veritas upsizes to $650 million, prices 6½% 10-year notes at 96.446 to yield 7%

By Paul A. Harris

Portland, Ore., May 25 - Compagnie Generale de Geophysique Veritas priced an upsized $650 million issue of 6½% 10-year senior notes (Ba3/BB-/) at 96.446 to yield 7% on Wednesday, according to an informed source.

The yield printed 12.5 basis points beyond the wide end of the 6¾% area yield talk. The reoffer price came cheap to the discount talk of 1 to 2 points.

Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp. and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market deal, which was upsized from $600 million.

The Paris-based geophysical services company plans to use the proceeds to refinance its term loans and senior notes due 2015.

Issuer:	Compagnie Generale de Geophysique Veritas
Face amount:	$650 million, increased from $600 million
Proceeds:	$626,899,000
Maturity:	June 1, 2021
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities (USA) LLC, BNP Paribas, Bank of America Merrill Lynch
Coupon:	6½%
Price:	96.446
Yield:	7%
Spread:	389 bps
Call features:	Make-whole call at Treasuries plus 50 bps until June 1, 2016, then callable at 103.25, 102.167, 101.083, par on and after June 1, 2019
Equity clawback:	35% at 106.5 until June 1, 2014
Trade date:	May 25
Settlement date:	May 31
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	6¾% area yield including 1-2 points OID
Marketing:	Quick to market

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