By Angela McDaniels
Tacoma, Wash., Sept. 23 - ION Geophysical Corp. issued a $40.8 million bridge loan senior increasing-rate note to Jefferies Finance CP Funding LLC on Sept. 18, according to an 8-K filing with the Securities and Exchange Commission.
The note priced at 98 and matures Dec. 31, 2008.
Interest will initially accrue at 13.5% per year and will increase to 14% on Nov. 18.
The note is callable, in whole or in part, at par plus accrued interest at any time.
Some domestic subsidiaries of ION that together hold 85% or more of the domestic assets of ION must guarantee the company's obligations under the note, the filing stated.
The proceeds totaled $40.0 million and were put toward the company's acquisition of Aram Systems Ltd. and Canadian Seismic Rentals Inc., which was completed on Sept. 18.
ION Geophysical is a Houston-based provider of acquisition equipment, software and planning and seismic processing and interpretation services to the energy industry.
| Issuer: | ION Geophysical Corp.
|
| Security description: | Bridge loan senior increasing-rate note
|
| Amount: | $40.8 million
|
| Proceeds: | $40.0 million
|
| Maturity: | Dec. 31, 2008
|
| Coupon: | 13.5%, with a step-up to 14% on Nov. 18; payable monthly
|
| Price: | 98
|
| Call option: | At par plus accrued interest at any time
|
| Investor: | Jefferies Finance CP Funding LLC
|
| Distribution: | Private placement
|
| Settlement date: | Sept. 18
|
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