Seitel Announces Pricing of Private Offering of $193,000,000 Aggregate Principal Amount at Maturity of 11 - 3/4% Senior Notes du
June 29 2004 - 12:46AM
PR Newswire (US)
Seitel Announces Pricing of Private Offering of $193,000,000
Aggregate Principal Amount at Maturity of 11 - 3/4% Senior Notes
due 2011 HOUSTON, June 28 /PRNewswire-FirstCall/ -- Seitel, Inc.
(OTC:SEIEQ) (BULLETIN BOARD: SEIEQ) , today announced that it has
entered into a purchase agreement for a private offering of
$193,000,000 aggregate principal amount at maturity of 11 - 3/4%
senior unsecured notes due 2011. The notes are being offered to
investors at a price of 97.675% of principal amount resulting in
gross proceeds to Seitel of approximately $188.5 million. This
private offering is one of the necessary funding components of
Seitel's chapter 11 plan of reorganization, which was confirmed by
the U.S. bankruptcy court on March 18, 2004 (the "Plan"). The notes
will mature on July 15, 2011, and interest on the notes will be
payable semi-annually in arrears on January 15 and July 15 of each
year, commencing on January 15, 2005. Subject to market and other
customary conditions, consummation of the private offering of the
notes is expected to occur on July 2, 2004, which is the
anticipated effective date of the Plan. Upon consummation of the
offering, Seitel will deposit the entire net proceeds from the sale
of the notes together with an additional cash amount 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. The deposit of
the net proceeds of the notes offering into escrow is one of the
conditions to effectiveness of the Plan. Seitel is not registering
the offer and sale of the notes under the Securities Act of 1933,
as amended (the "Securities Act"), or under any state securities
laws. The 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
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 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.
Oil and gas companies to assist in the exploration for and
development and management of oil and gas reserves use Seitel's
products and services. Seitel has ownership in an extensive library
of proprietary onshore and offshore seismic data that it has
accumulated since 1982 and that it offers for license to a wide
range of oil and gas companies. Seitel believes that its library of
onshore seismic data is one of the largest available for licensing
in the United States and Canada. Seitel's 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 it has 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 consummate the notes offering and the anticipated use
of the net proceeds of the notes 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. Contact Information Leonard M.
Goldstein, Corporate Counsel Robert D. Monson, Chief Financial
Officer Telephone: 713-881-8900 DATASOURCE: Seitel, Inc. CONTACT:
Leonard M. Goldstein, Corporate Counsel or Robert D. Monson, Chief
Financial Officer, +1-713-881-8900, both of Seitel, Inc. Web site:
http://www.seitel-inc.com/
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