PGS gets commitments for $489 million term loans, extended revolver

By Sarah Lizee

Olympia, Wash., Jan. 21 – PGS ASA received commitments for a four-year term loan B in a minimum principal amount of $489 million and an extension of $215 million of its revolving credit facility by three years from its current expiry date in September, according to a press release.

The company plans to extend at least 90%, or $339 million, of the existing $377 million term loan B to March 2024 from the current maturity in March 2021, add $150 million of incremental term loan B debt with same maturity and terms as the extended term loan B, and extend the revolver to September 2023.

The proceeds from the $150 million incremental term loan B and new equity will be used to redeem the $212 million senior notes due December 2020, to pay transaction fees and expenses and will otherwise be used for general corporate purposes.

The company has received term loan and revolving commitments of $489 million and $215 million, respectively, subject to completion of an equity raise of at least $75 million and other customary closing conditions.

The refinancing is expected to be completed concurrently with the closing of the private placement.

The term loan bears interest at Libor plus 600 basis points to 700 bps depending on the company’s leverage ratio, which corresponds to an interest rate of 7.6% to 8.6% if the current four-year swap interest rate is applied.

PGS is a Norway-based marine geophysical company providing a broad range of seismic and reservoir services, including acquisition, imaging, interpretation and field evaluation.

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