Norwegian seismic services provider PGS announced that it withdraws the proposed transaction, published in late May, according to which the company aimed 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 company explained in an official statement.
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.
