ION secures requisite backstop support for rights offering, another key bond restructuring milestone
ION Geophysical Corporation (NYSE: IO) announced securing over $20 million in backstop support for its rights offering, essential for the bond restructuring process. This support was a prerequisite for participation in the upcoming bond exchange offer. The company aims to secure additional support until the maximum amount is reached or the record date occurs. Oppenheimer & Co. Inc. is the exclusive dealer manager for this offering. CEO Chris Usher highlighted this milestone as crucial for closing the restructuring transactions, which are expected to conclude in early April.
- Secured over $20 million in backstop support for rights offering, crucial for bond restructuring.
- Opportunity for bondholders to participate in both debt and equity with attractive premiums.
- Expecting to complete restructuring transactions by early April.
- Participation in the bond exchange offer was conditioned on securing backstop support.
- Various risks associated with completion of restructuring transactions in a timely manner.
HOUSTON, March 03, 2021 (GLOBE NEWSWIRE) -- ION Geophysical Corporation (NYSE: IO) today announced that the Company has secured more than
The Company will seek to obtain additional backstop support in connection with the rights offering until the maximum amount is secured or the record date (the date on which a person must hold shares to participate) is reached. Oppenheimer & Co. Inc. is serving as the exclusive dealer manager for the rights offering. For additional details regarding the bond exchange offer and rights offering transactions, please refer to the registration statements on Form S-1 and Form S-4 filed with the SEC today.
“This milestone was a significant hurdle to closing the bond restructuring transactions,” said Chris Usher, ION’s President and Chief Executive Officer. “The deal provides the opportunity to participate in both debt and equity, depending on the party’s preference, with attractive backstop premiums. We are in the final stretch and remain on track to complete the transactions in early April.”
About ION
Leveraging innovative technologies, ION delivers powerful data-driven decision-making to offshore energy, ports and defense industries, enabling clients to optimize operations and deliver superior returns. Learn more at iongeo.com.
Contacts
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Mike Morrison, +1 281.879.3615
mike.morrison@iongeo.com
ION (Media relations)
Vice President, Communications
Rachel White, +1 281.781.1168
rachel.white@iongeo.com
Registration statements relating to the securities to be offered in the exchange offer and the rights offering in connection with the restructuring transactions have been filed with the Securities and Exchange Commission, but have not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of such state or jurisdiction. The exchange offer and the rights offering will be made only by means of a prospectus. Copies of each such prospectus, when they become available, will be distributed, as applicable, to our bondholders and shareholders and may also be obtained free of charge at the website maintained by the SEC at or by contacting the appropriate agent for the offerings. Contact information for such agents will be provided when available.
The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased demand; changes in oil prices; agreements made or adhered to by members of OPEC and other oil producing countries to maintain production levels; the COVID-19 pandemic; our ability to complete the Restructuring Transactions and other related matters in a timely manner, if at all; and political, execution, regulatory, and currency risks. For additional information regarding these various risks and uncertainties, see our Form 10-K for the year ended December 31, 2020, filed on February 12, 2021, and our Forms S-1 and S-4, filed on January 29, 2021, and amended on February 12, 2021 and March 3, 2021. Additional risk factors, which could affect actual results, are disclosed by the Company in its filings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.
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