ION Geophysical has completed its direct offering of 2,990,001 shares at $3.50 per share.
ION Geophysical has completed its direct offering of 2,990,001 shares at $3.50 per share. The company intends to use the $10.5 million raised, excluding transaction expenses, for working capital.
Chris Usher, ION’s president and chief executive officer, said, ‘It strengthens our balance sheet and provides additional flexibility to manage the business through the tail end of the pandemic. We continue to proceed with the upcoming bond restructuring transactions and associated rights offering, pending shareholder approval, in early April.’
On 22 January the company’s shareholders voted 98% in favour of proposed bond restructuring, and 96% in favour of the associated increase to our available shares of common stock. It has also secured more than $20 million in backstop support for its rights offering, which supporting bondholders had laid down a condition of their participation in the upcoming bond exchange offer.
To address the upcoming maturity of the $120.6 million Second Lien Notes on 15 December 2021, ION executed a restructuring agreement in late December. The deal will extend the bond maturity by four years to December 2025 with a lower 8% interest rate.
