Brief: PGS Contemplates Private Placement Of New Ordinary Shares For Gross Proceeds Of Up To $150 Mln

PGS ASA

01/11/2022 16:23

Nov 1 (Reuters) - PGS ASA  PGS.OL :
    * IS CONTEMPLATING PRIVATE PLACEMENT OF NEW ORDINARY SHARES
FOR
GROSS PROCEEDS OF UP TO USD 150 MILLION (CORRESPONDING TO ABOUT
NOK 1,537 MILLION)
    * IS CURRENTLY SEEING AN ONGOING MARKET RECOVERY WITH
STRENGTHENING DEMAND FOR ITS MARINE GEOPHYSICAL SERVICES, AND
EXPECTS THAT MARKETS WILL IMPROVE FURTHER IN 2023
    * IT IS KNOWN IN MARKET THAT PGS IS IN LEAD POSITION FOR
AWARD OF
A SIGNIFICANT 4D ACQUISITION CONTRACT IN BRAZIL SCHEDULED TO
START IN Q2 2023
    * HAS NOT RECEIVED A FORMAL CONTRACT AWARD, AND UNTIL SUCH
TIME,
COMPANY CANNOT BE CERTAIN THAT AN AWARD WILL TAKE PLACE
    * BUT IN COMPANY'S VIEW, IT IS CURRENTLY MOVING TOWARDS A
LIKELY
AWARD TO PGS
    * IF AWARDED, THIS CONTRACT WILL SIGNIFICANTLY INCREASE
COMPANY'S
ORDER BACKLOG AND BOOKING
    * INTENDS TO USE NET PROCEEDS FROM PRIVATE PLACEMENT TO
REDUCE ITS
LEVERAGE
    * PROCEEDS WILL POSITION PGS TO MANAGE 2023 DEBT
AMORTIZATION AND
EXTEND RE-FINANCING WINDOW TO MARCH 2024
    * A STRENGTHENED BALANCE SHEET, TOGETHER WITH ONGOING MARKET
RECOVERY IN MARINE GEOPHYSICS MARKET, WILL REDUCE REFINANCING
RISK AND EXPECTED COST OF A REFINANCING
    * SUBSCRIPTION PRICE FOR NEW SHARES WILL BE DETERMINED BY
BOD IN
PGS BASED ON ACCELERATED BOOK-BUILDING PROCESS
    * TRANSACTION HAS RECEIVED STRONG SUPPORT FROM EXISTING
SHAREHOLDERS IN COMPANY

Source text for Eikon:  ID:nGNE6PK6zv 
Further company coverage:  PGS.OL 
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