ION Geophysical convertible noteholders convert 88% of securities

By Jennifer Chiou

New York, Nov. 27 - ION Geophysical Corp. announced that holders of $52.76 million, or about 88%, of its 5.5% convertible senior notes due 2008 have converted their notes into ION Geophysical common stock.

ION Geophysical said it issued 12.2 million shares in exchange for the notes and also paid $1.3 million of accrued interest.

In addition, a $2.9 million supplemental payment was made to holders in lieu of future interest payments.

"The conversion transaction removes a mature, significantly in-the-money security from ION's capital structure," said R. Brian Hanson, executive vice president and chief financial officer of ION, in a news release.

"Additionally, we believe the transaction will result in an economic benefit to the company's shareholders through a significant reduction in the short position of its common stock and a corresponding decrease in volatility."

The company said that $7.24 million of notes remains outstanding.

Based in Houston, ION is a provider of geophysical technology and services for the oil and gas industry.

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