Seitel settles excess cash flow offer for $2 million of 11¾% notes

By Susanna Moon

Chicago, May 9 - Seitel, Inc. purchased its $2 million of outstanding 11¾% senior notes due July 15, 2011 under an excess cash flow offer, according to a 10-Q filing with the Securities and Exchange Commission for the quarter ended March 31.

The offer began on March 30 and ended at 5 p.m. ET on April 29, and settlement occurred on May 3.

The payment was $1,035.25 per $1,000 principal amount of notes, which was equal to par plus accrued interest.

The company previously said it was required by the note terms to make this offer because it generated more than $5 million of excess cash flow for 2010.

Seitel believed in good faith that not all conditions to occurrence of a triggering event had occurred in connection with the excess cash flow offer, according to a previous SEC filing.

The company issued $193 million of the notes on July 2, 2004.

Seitel is a Houston-based provider of seismic services to the energy industry.

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