Geokinetics to start roadshow Friday for $275 million five-year notes

By Paul A. Harris

St. Louis, Dec. 8 - Geokinetics Holdings, Inc. will begin a roadshow on Friday for its $275 million offering of five-year senior secured notes, according to an informed source.

The deal is expected to price late in the Dec. 14 week.

RBC Capital Markets Corp. is the lead bookrunner for the Rule 144A and Regulation S with registration rights notes. Bank of America Merrill Lynch is the joint bookrunner.

The notes come with two years of call protection. However, 10% of the issue will be callable at 103 during each 12-month period up to the first call date.

The notes also feature a change-of-control put at 101.

The notes are guaranteed, jointly and severally, by all current and future domestic subsidiaries.

Credit ratings remain to be determined.

Proceeds will be used to finance the cash portion of the PGS Onshore acquisition and to repay debt.

Proceeds will be placed in escrow. If the acquisition is not consummated prior to March 15, 2010, Geokinetics will be required to redeem the notes at 101, plus accrued interest to the date of redemption.

Geokinetics is a Houston-based provider of seismic data acquisition and seismic data processing and interpretation services.

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