CGG is refinancing its debt by raising $1.2 billion in 8.75% senior secured notes due in 2027 and 7.75% senior secured notes due in 2027.
CGG is refinancing its debt by raising $1.2 billion in 8.75% senior secured notes due in 2027 and 7.75% senior secured notes due in 2027.
The company has also arranged a $100 million revolving credit facility (RCF) agreement secured by the same security package as the notes with its pricing linked in part to greenhouse gas emission reduction targets.
Sophie Zurquiyah, chief executive officer of CGG, said: ‘Our successful over-subscribed debt refinancing highlights the financial market’s confidence in our company. With this transaction, we have streamlined our capital structure, which is now more flexible, less expensive and includes a credit facility. We have liquidity and expect positive net cash flow generation in 2021 and beyond.’
CGG intends to use the net proceeds from the offering, together with cash on hand, to repurchase its first lien senior secured notes due in 2023 for a principal amount of $300 million and €280 million ($235 million); satisfy and discharge in full the second lien senior secured notes due in 2024 of $355 million and €80 million ($70 million); and pay all fees and expenses.
Meanwhile, CGG has been awarded three major seismic imaging projects by BP. Two of the contracts will be in the deepwater Gulf of Mexico and one offshore Trinidad & Tobago.
The projects will start in Q1/Q2 this year and complete with cloud delivery of the data no later than Q4 of 2021.
Utilizing CGG Cloud supercomputing, imaging specialists at CGG’s Houston subsurface imaging centre will employ compute-intensive data-driven proprietary algorithms, such as time-lag full-waveform inversion and least-squares migration.
