By Paul Deckelman
New York, April 28 - CGG SA (Ba3) priced a $500 million offering of senior notes due Jan. 15, 2022 on Monday, high yield syndicate sources said.
The issue priced at par to yield 6 7/8%, in the middle of pre-deal market price talk of 6 ¾% to 7%.
The quickly shopped deal was marketed via a morning investor call and priced just hours after having been announced.
The bonds were was brought to market by global coordinators Credit Suisse Securities (USA) LLC, which handled billing and delivery, and BNP Paribas Securities Corp., as well as joint bookrunners B of A Merrill Lynch and RBC Capital Markets Corp.
The Rule 144A/Regulation S notes, with registration rights, carry call protection for the first three years after their issue. There is also a standard three-year, 35% equity clawback provision.
CGG - a Paris-based provider of geological, geophysical, and reservoir services to customers in the oil and gas exploration and production industry, as well as a manufacturer of geophysical equipment - plans to use the net proceeds from the offering to redeem its $225 million of 9½% senior notes due 2016 and will use the remaining net proceeds to redeem a portion of its $400 million of 7¾% senior notes due 2017.
Monday's deal was CGG's second recent foray into the junk bond market. It priced €400 million of 5 7/8% senior notes due 2020 at par on April 16 following a roadshow. Proceeds of that deal, which was upsized from an originally announced €360 million, were slated for the repurchase of the company's €360 million of Oceane convertible notes due 2016, with anything left over to be used to repay other debt.
| Issuer: | CGG SA
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2022
|
| Securities: | Senior notes
|
| Global coordinators: | Credit Suisse Securities (USA) LLC (billing and delivery), BNP Paribas Securities Corp.
|
| Joint bookrunners: | B of A Merrill Lynch and RBC Capital Markets Corp.
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 446 bps
|
| Call protection: | Non-callable until July 15, 2017, then at 105.156
|
| Equity clawback | For up to 35% of issue at 106.875 until July 15, 2017
|
| Trade date: | April 28
|
| Settlement date: | May 1
|
| Ratings: | Moody's: Ba3
|
| Distribution: | Rule 144A and Regulation S, with registration rights
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Quick to market
|
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