By Laura Lutz
Des Moines, Dec. 6 - ION Geophysical Corp. completed a $5 million private placement of series D-2 cumulative convertible preferred stock, according to an 8-K filing with the Securities and Exchange Commission.
The company sold 5,000 preferred shares to Fletcher Asset Management, Inc. for $1,000 apiece.
The placement was conducted under a Feb. 15, 2005 agreement. Fletcher bought 30,000 shares of series D-1 cumulative convertible preferreds in February 2005 and received the right to buy up to 40,000 additional preferred shares until Feb. 16, 2008.
The preferreds bear dividends at a minimum rate of 5% per year and a maximum annual rate of Libor plus 250 basis points. They are initially convertible into common stock at $16.0429 per common share.
Proceeds will be used for working capital and other general corporate purposes.
Houston-based ION is a provider of geophysical technology and services for the oil and gas industry.
| Issuer: | ION Geophysical Corp.
|
| Issue: | Series D-2 cumulative convertible preferred stock
|
| Amount: | $5 million
|
| Shares: | 5,000
|
| Dividend: | 5% (minimum); Libor plus 250 bps (maximum)
|
| Price: | $1,000
|
| Conversion price: | $16.0429
|
| Warrants: | No
|
| Investor: | Fletcher Asset Management, Inc.
|
| Settlement date: | Dec. 6
|
| Stock symbol: | NYSE: IO
|
| Stock price: | $15.97 at close Dec. 6
|
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