Seitel Announces Proposed $190 Million Private Offering of Senior Notes Due 2012
June 10 2004 - 8:30AM
PR Newswire (US)
Seitel Announces Proposed $190 Million Private Offering of Senior
Notes Due 2012 HOUSTON, June 10 /PRNewswire-FirstCall/ -- Seitel,
Inc. (OTC:SEIEQ) (BULLETIN BOARD: SEIEQ) (TSE:OSL), today announced
that it proposes, subject to market and other customary conditions,
to commence a private offering of $190 million aggregate principal
amount of new senior unsecured notes due 2012 as provided in its
chapter 11 plan of reorganization, which was confirmed by the U.S.
Bankruptcy Court on March 18, 2004 (the "Plan"). Upon the
completion of the offering, the entire net proceeds from the sale
of the new senior notes will be deposited by Seitel into escrow
pending the completion of equity financing transactions
contemplated by the Plan that will provide additional funds which,
upon the release from escrow of the net proceeds from the notes
offering, will be used in the aggregate, together with certain cash
on hand, to pay 100% of allowed creditors' claims, together with
post-petition interest, as required under the Plan. Seitel can give
no assurance that the proposed offering of new senior notes will be
completed. Seitel is not registering the offer and sale of the new
senior notes under the Securities Act of 1933, as amended (the
"Securities Act"), or under any state securities laws. The new
senior notes will be issued to the initial purchasers thereof in a
private offering under Section 4(2) of the Securities Act, and the
initial purchasers, in turn, will resell the notes only (i) to
"qualified institutional buyers" in reliance on the exemption from
registration pursuant to Rule 144A under the Securities Act and
(ii) outside the United States in offshore transactions to non-U.S.
persons in reliance on Regulation S under the Securities Act. The
new senior notes may not be offered or sold within the U.S. or to,
or for the account or benefit of, any U.S. person unless the offer
or sale is registered under, or would qualify for an exemption from
the registration requirements of, the Securities Act and applicable
state securities laws. This press release shall not constitute an
offer to sell, or the solicitation of an offer to buy, nor shall
there be any sale of the new senior notes in any state in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state. ABOUT SEITEL Seitel is a leading provider of seismic data
and related geophysical services to the oil and gas industry in
North America. Our products and services are used by oil and gas
companies to assist in the exploration for and development and
management of oil and gas reserves. Seitel has ownership in an
extensive library of proprietary onshore and offshore seismic data
that we have accumulated since 1982 and that we offer for license
to a wide range of oil and gas companies. We believe that our
library of onshore seismic data is one of the largest available for
licensing in the United States and Canada. Our seismic data library
includes both onshore and offshore three-dimensional (3D) and
two-dimensional (2D) data and offshore multi-component data. Seitel
has ownership in approximately 32,000 square miles of 3D and
approximately 1.1 million linear miles of 2D seismic data
concentrated primarily in the major North American oil and gas
producing regions. Seitel markets its seismic data to over 1,300
customers in the oil and gas industry, and we have license
arrangements with in excess of 1,000 customers. Statements in this
press release about the future outlook related to Seitel (including
its plans to offer the new senior notes and consummate the
offering, the anticipated terms of the notes and the anticipated
use of the net proceeds of the offering) involve known and unknown
risks and uncertainties, which may cause Seitel's actual results to
differ materially from expected results. While Seitel believes its
forecasting assumptions are reasonable, there are factors that are
hard to predict and influenced by economic and other conditions
that are beyond its control. Among the other important factors
which could cause actual results to differ materially from those in
the forward-looking statements are the failure of the Plan to
otherwise become effective, market conditions and other factors
beyond Seitel's control, including the risk factors and other
cautionary statements detailed in the Disclosure Statement relating
to the Plan or in Seitel's filings with the Securities and Exchange
Commission, including its most recent Form 10-K Annual Report, a
copy of which may be obtained from Seitel without charge.
DATASOURCE: Seitel, Inc. CONTACT: Leonard M. Goldstein, General
Counsel, or Robert D. Monson, Chief Financial Officer, both of
Seitel, Inc., +1-713-881-8900 Web site: http://www.seitel-inc.com/
Copyright