By Stephanie N. Rotondo
Phoenix, Dec. 6 - Global Geophysical Services Inc. priced $8.69 million of 11.5% series A cumulative perpetual preferred stock, the company said in a press release on Friday.
The preferreds will be issued as depositary shares representing a 1/1,000th interest. The preferreds were also sold at a discounted price of $23.00 per share
MLV & Co. LLC and National Securities Corp. are the joint bookrunning managers.
Dividends will be payable monthly, and the preferreds cannot be redeemed until Dec. 13, 2018. However, the company can redeem the stock in the event of a change of control.
The company intends to list the new securities on the New York Stock Exchange under the ticker symbol "GGSPA." If the preferreds should be delisted for a period of 180 consecutive days, the dividend will increase and holders will have a right to appoint two members to the board of directors. The penalty rate will also go into effect if the company fails to make six dividend payments.
Once all accumulated dividends have been paid in full, the dividend will reset to the initial rate.
Proceeds will be used for general corporate purposes.
Global Geophysical is a Missouri City, Texas-based provider of seismic data solutions to the oil and gas industry.
| Issuer: | Global Geophysical Services Inc.
|
| Securities: | Series A cumulative preferred stock
|
| Amount: | $8.69 million, or 347,827 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | MLV & Co. LLC, National Securities Corp.
|
| Dividend: | 11.5%
|
| Penalty dividend: | 13.5%
|
| Price: | $23.00 per share
|
| Liquidation preference: | $25.00 per share
|
| Call options: | On or after Dec. 13, 2018 or in the event of a change of control at par plus accrued dividends
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 13
|
| Expected listing: | NYSE: GGSPA
|
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