Electromagnetic Geoservices obtains covenant waiver for 9% convertible bond, 7% convertible loan

By Jennifer Chiou

New York, May 20 - Electromagnetic Geoservices ASA announced that holders granted sufficient pre-acceptance of a temporary covenant waiver for the company's 9% senior unsecured convertible bond issue 2009/2011 and its 7% senior secured convertible loan due 2012.

The waiver of the equity ratio covenant in the loan agreement applies through June 30.

According to a company release, the arrangement will be formalized through a bondholders' meeting to be convened shortly.

For the 7% convertibles, the new ratio requirement is 15% for the first half of 2010.

Electromagnetic Geoservices added that the arrangement with Fugro Norge AS requires no further formalities.

Questions may be directed to Svein Knudsen, chief financial officer (47 22 01 14 00).

The Trondheim, Norway, company provides proprietary electromagnetic technology to support oil and gas companies in their search for offshore hydrocarbons.

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