ION secures requisite backstop support for rights offering, another key bond restructuring milestone
March 03 2021 - 07:36AM
ION Geophysical Corporation (NYSE: IO) today announced that the
Company has secured more than $20 million in backstop support for
its rights offering. This was a critical milestone in the bond
restructuring process, as the supporting bondholders had
conditioned their participation in the upcoming bond exchange offer
on the Company securing this amount of backstop support.
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
OfficerMike Morrison, +1 281.879.3615 mike.morrison@iongeo.com
ION (Media relations)
Vice President, CommunicationsRachel White, +1
281.781.1168rachel.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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