PGS Withdraws Refinancing
June 19, 2019: Oslo, Norway, reference is made to the press releases published May 27, 2019 and June 3, 2019 where PGS initiated a process ("the transaction") seeking to raise approximately $525 million of 5-year first lien term loan and approximately $150 million of 5.5-year second lien notes. The proceeds were intended to repay the Company`s existing $212 million senior notes maturing in December 2020 and $380 million term loan maturing in March 2021, and to reduce drawings under its revolving credit facility.
As a result of increased volatility in the capital markets and weaker investor sentiment toward oil field service post-launch, PGS has not been able to reach the targeted terms and has decided to withdraw the proposed transaction.
The marine seismic market is in recovery with increased activity levels and a significant improvement of pricing for contract services. PGS expects to generate positive cash flow and reduce net debt in 2019. The Company`s existing capital markets debts still have 18 and 21 months to maturity, respectively, and are at attractive terms. PGS expects to refinance these facilities in 2019.
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PGS ASA and its subsidiaries ("PGS" or "the Company") is a focused marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. The Company operates on a worldwide basis with headquarters in Oslo, Norway and the PGS share is listed on the Oslo stock exchange (PGS.OL). For more information on PGS visit www.pgs.com.
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The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our MultiClient data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2018. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and PGS disclaims any and all liability in this respect.
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This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Petroleum Geo-Services ASA via GlobeNewswire
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