Electromagnetic Geoservices wants to extend maturity of convertibles, increase interest rate

By Mary-Katherine Stinson

Lexington, Ky., Jan. 27 – Electromagnetic Geoservices ASA is proposing to holders of its floating-rate convertible bonds due 2023 to extend the maturity date and increase the interest margin, according to a company news release.

The company proposes extending the maturity by 24 months to May 2025 from May 2023.

Also, the company wants to increase the interest margin over the reference rate by 100 basis points to 650 bps.

The changes will be submitted under the procedure for written resolutions as required by the bond agreement.

The company states that a sufficient majority of bondholders have already indicated by way of a written resolution that they will vote for the proposals.

After the company purchased $8 million of the bonds in voluntary buybacks in 2021, there is $24.5 million outstanding.

The Trondheim, Norway-based marine electromagnetic company supports offshore oil and gas companies.

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