ION Geophysical may issue high-yield notes, has $150 million bridge as back up

By Angela McDaniels

Tacoma, Wash., Sept. 23 - ION Geophysical Corp. may attempt to raise funds through an issue of high-yield notes, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds would be used to repay the $40.8 million bridge loan senior increasing-rate note, $35 million senior unsecured promissory note, $10 million subordinated unsecured promissory note and $72 million revolving credit facility used to fund the company's acquisition of Aram Systems Ltd. and Canadian Seismic Rentals Inc., which was completed on Sept. 18.

The company has a commitment from Jefferies Finance LLC for a $150 million senior bridge loan facility and said the facility would be drawn down if its attempts to raise other long-term debt, including high-yield notes, is not successful.

ION Geophysical is a Houston-based provider of acquisition equipment, software and planning and seismic processing and interpretation services to the energy industry.

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