Seitel fails to gain consent for 11¾% notes amendment

By Angela McDaniels

New York, Dec. 13 - Seitel Inc. said the consent solicitation for its 11¾% senior notes due 2011 expired on Thursday without receiving the required approval from noteholders.

As previously reported, the Houston provider of seismic data to the oil and gas industry sought to amend the note indenture to exclude from the limitation on capital expenditures amounts paid to the company by a third party to fund the acquisition of new seismic data by the company when it simultaneously grants a license to use the data for a limited exclusive period.

"We thought the proposal presented an opportunity for both our noteholders and our stockholders. While we are disappointed that the solicitation was not successful, the company does not expect the outcome of the consent solicitation to materially affect its business plan," chief executive officer Rob Monson said in a company news release.

Seitel offered to pay a fee of $30.00 per $1,000 principal amount to holders who consented.

The solicitation ended at 5 p.m. ET on Dec. 22.

UBS Securities LLC is solicitation agent (888 722-9555 ext. 4210 or 203 719-4210). Georgeson Shareholder Communications Inc. is the information agent (888 867-7059 or call collect 212 440-9800).

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