The agreement in principle remains subject to lenders’ internal approvals and agreement on final documentation. Subject to the successful completion of these processes in the next few weeks, it is anticipated that the Company will initiate an amendment request to all TLB lenders not yet engaged in the negotiations to approve and implement final agreements. To date, the Company has reached agreement in principle on main terms with; an
The main terms agreed include:
- No debt maturities and no scheduled debt amortization until
September 2022 which will be the new maturity of an amount of$135 million equivalent to the RCF amount maturing today - The
$215 million RCF due 2023 will be combined on equivalent terms with the TLB due 2024, with the combined TLB having a$200 million amortization inSeptember 2023 in lieu of the current 2023 RCF maturity - An excess liquidity sweep that will apply for any liquidity reserve in excess of
$200 million at any quarter-end - An amendment of the financial maintenance covenants, with the net leverage ratio at 4.5x through
30 June 2021 and a gradual step down thereafter - Customary fees to be paid partly in cash and partly in kind
- The issuance of a
NOK 116.2M 3-year 5% unsecured convertible bond (“CB””) which can be converted into new shares atNOK 3 per share up to a maximum of 38,720,699 shares (equalling 10% of the currently outstanding PGS shares). Lenders under the RCF and TLB facilities will have a pro rata preferential right to subscribe for the CB against conversion of a corresponding amount of existing loans. To the extent the CB is not fully subscribed, a subset of the lenders under the TLB will subscribe for the unallocated amount for cash. PGS will be able to require that bondholders convert the CB into shares if the PGS share price exceedsNOK 6 during 30 consecutive trading days
The majority of lenders under the
The Company will continue working to achieve support from the required lenders under the RCF and TLB. However, if such support is not ultimately achieved, the Company has agreed with the supporting lenders under the RCF and TLB to seek implementation by use of available alternative legal restructuring procedures.
The Company will continue to operate its business as usual by performing other obligations, including payment of interest, as they fall due.
The Company will provide updates as further milestones are reached.
FOR DETAILS, CONTACT: |
Mobile: +47 99 24 52 35 |
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The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our multi-client data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2019. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and PGS disclaims any and all liability in this respect.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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