Petroleum Geo-Services extends tender for 10% notes

By Jennifer Chiou

New York, Dec. 15 - Petroleum Geo-Services ASA said its tender offer for its $745.9 million of 10% senior notes due 2010 has been extended to 8 a.m. ET on Dec. 16 from 8 a.m. ET on Dec. 14.

As of Dec. 14, the company announced it received consents from holders of 99% of its 10% notes, unchanged from Dec. 1.

Petroleum Geo-Services, which announced the tender on Nov. 15 as part of a refinancing effort, said on Dec. 1 that it obtained the required consents to amend the notes' indenture, allowing it to eliminate all of the affirmative and restrictive covenants and events of default.

The consent deadline had been extended to 5 p.m. ET on Nov. 30 from 5 p.m. ET on Nov. 29.

The company previously reported that as of 11:30 a.m. ET on Nov. 29, it had received consents for 98% of the notes.

Petroleum Geo-Services said it will pay $1,136.40 per $1,000 principal amount of notes as well as accrued interest up to but excluding the payment date. The payout includes a $20.00 consent payment for the noteholders who tendered their securities before the consent deadline.

For each $1,000 principal amount of notes, Petroleum Geo-Services based its payment on the present value of the notes on their earliest redemption date, discounted using the yield to maturity of the 3% Treasury due Nov. 15, 2007 and 50 basis points.

Pricing was determined at 2 p.m. ET on Nov. 30.

The offer is contingent upon the company entering into a new credit facility.

UBS Investment Bank (888 722-9555 or call collect 203 719-4210) is dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-3900 or call collect 212 430-3774) is the information agent.

Based in Lysaker, Norway, Petroleum Geo-Services is an oilfield service company that provides seismic and reservoir services.

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