ION Geophysical talks $175 million five-year notes to yield 8%-8¼%

By Paul A. Harris

Portland, Ore., May 7 - ION Geophysical Corp. talked its $175 million offering of five-year senior secured second-lien notes to yield 8% to 8¼%, an informed source said on Tuesday.

Books close at 10 a.m. ET on Wednesday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the left bookrunner. Wells Fargo Securities LLC is the joint bookrunner.

The Rule 144A and Regulation S for life notes come with two years of call protection and feature a two-year 35% equity clawback and a 101% poison put.

The notes are secured by a perfected second-priority lien on substantially all of the company's tangible assets, capital stock and intercompany debt of the borrower and guarantor.

Proceeds will be used to repay debt and for general corporate purposes, including potential capital contributions to the GeoRXT joint venture.

Earlier this year ION Geophysical announced that it planned to acquire a 30% stake in GeoRXT, an ocean bottom cable data services provider, from Reservoir Exploration Technology.

ION Geophysical is a Houston-based provider of geophysical technology, services and solutions for the oil and gas industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.