ION announces preliminary first quarter 2021 results, an extension to participate in its Rights Offering and Exchange Offer t...
April 05 2021 - 6:48PM
ION Geophysical Corporation (NYSE: IO) (the “Company” or “ION”)
today announced that the Company expects to report first quarter
2021 revenues of approximately $14 million. The Company’s cash
balance at March 31, 2021 is expected to be approximately $34
million, including net revolver borrowings of $21 million. Total
liquidity, consisting of cash on hand and remaining available
borrowing base capacity under the revolving credit facility, is
expected to be approximately $39 million at quarter end. Despite
continued near-term market challenges, backlog increased for the
third consecutive quarter to approximately $21 million, primarily
due to the Company’s strategic entry into the 3D new acquisition
multi-client market. ION expects to recognize the majority of this
backlog during the second and third quarters as its Mid North Sea
High program progresses this summer.
“While our first quarter revenues were
negatively impacted by lower multi-client data sales, we saw
increasing client activity towards quarter end, providing new
evidence of pent up demand for data by E&P customers to support
portfolio rebalancing,” said Chris Usher, ION’s President and Chief
Executive Officer. “The first quarter results reflect previously
noted near-term uncertainty, however, we continue to believe our
U-shaped recovery thesis starting in the back half of the year
remains intact. In addition, oil prices improved considerably since
the start of the year, generally a leading indicator of increased
client spending.”
Extension to Participate in Rights
Offering and Exchange Offer
The Company also announced today an extension of
its previously announced Rights Offering by two business days to
accommodate multiple requests for additional time for shareholders
to subscribe. The Rights Offering will now expire immediately after
5:00 p.m., New York City time, on Monday, April 12, 2021. The
previously announced Exchange Offer will likewise be extended by
two business days to expire immediately after 11:59 p.m., New York
City time, on Monday, April 12, 2021. Rights holders who want to
participate in the Rights Offering should contact their financial
advisor for the timing and procedures to exercise their
subscription rights as far in advance of April 12, 2021 as is
practical. Holders of ION’s existing 9.125% Senior Secured Second
Priority Notes due 2021 (the “Old Notes”) who want to participate
in the Exchange Offer should contact D.F. King & Co., Inc., the
Information and Exchange Agent for the Exchange Offer at the
contact information provided below.
“We are pleased with the strong investor support
for our restructuring, and would like to thank both our noteholders
and backstop parties for their significant commitments to these
transactions,” added Chris Usher, ION’s President and Chief
Executive Officer. “Given the high level of interest in the Rights
Offering and requests for additional time over the last few days,
we believe it is prudent to grant an extension to allow additional
time to process subscriptions from shareholders of record who would
like to participate.”
Waiver of 95% Minimum Tender
Condition
The Company also announced the completion of the
last significant closing condition of the Exchange Offer—namely, a
waiver of the requirement that 95% of bondholders participate in
the Exchange Offer by the supporting noteholders and PNC Bank,
National Association. To date, approximately 93.92% of the Old
Notes have been tendered in the Exchange Offer. As a result, the
Company believes that all material closing conditions of the
Exchange Offer transaction have been, or will be, satisfied or
waived and ION expects the Exchange Offer and Rights Offering to
now settle on April 15, 2021.
The Rights Offering and Exchange Offer are being
made pursuant to registration statements on Form S-1 and Form S-4,
respectively, on file with the Securities and Exchange Commission.
You are urged to carefully read the prospectuses before making any
decision with respect to the Rights Offering and the Exchange
Offer. Questions regarding the terms and conditions of the Rights
Offering and the Exchange Offer should be directed to D.F. King
& Co., Inc. at 1 (877) 732-3617 or ion@dfking.com.
None of the Company, the dealer manager, the
trustee with respect to the Old Notes and the trustee with respect
to the new notes, the information and exchange agent or any
affiliate of any of them makes any recommendation as to whether
holders of the Old Notes should exchange their Old Notes in the
Exchange Offer or deliver Consents in the Consent Solicitation, and
no one has been authorized by any of them to make such a
recommendation. Holders must make their own decision as to whether
to tender Old Notes and deliver Consents and, if so, the principal
amount of Old Notes to tender.
This press release is for informational purposes
only and is not an offer to purchase or to sell or a solicitation
of an offer to purchase or sell any securities, nor shall there be
any offer, solicitation or sale of any securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About ION
Leveraging innovative technologies, ION delivers
powerful data-driven decision-making to offshore energy and
maritime operations markets, enabling clients to optimize
investments and results through access to our data, software and
distinctive analytics. 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
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 Form S-1 and
Form S-4, each 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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