Global Geophysical to sell 11.5% cumulative preferreds; proceeds for general corporate purposes

By Stephanie N. Rotondo

Phoenix, Dec. 4 - Global Geophysical Services Inc. will price 11.5% series A cumulative perpetual preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Wednesday.

The preferreds will be issued as depositary shares representing a 1/1,000th interest.

MLV & Co. LLC and National Securities Corp. are the joint bookrunning managers.

Dividends will be payable monthly, and the preferreds cannot be redeemed until December 2018. However, the company can redeem the preferreds in the event of a change of control.

The company intends to list the new securities on the New York Stock Exchange under the ticker symbol "GGSPA." If the preferreds should be delisted for a period of 180 consecutive days, the dividend will increase and holders will have a right to appoint two members to the board of directors. The penalty rate will also go into effect if the company fails to make six dividend payments.

Once all accumulated dividends have been paid in full, the dividend will reset to the initial rate.

Proceeds will be used for general corporate purposes.

Global Geophysical is a Missouri City, Texas-based provider of seismic data solutions to the oil and gas industry.

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