Geokinetics Announces Pricing of Offering of $300 Million Senior Secured Notes Due 2014
December 18 2009 - 5:47PM
PR Newswire (US)
HOUSTON, Dec. 18 /PRNewswire-FirstCall/ -- Geokinetics Inc. (NYSE
Amex: GOK) announced today that its wholly-owned subsidiary,
Geokinetics Holdings USA, Inc. (f/k/a Geokinetics Holdings, Inc.),
priced an offering of $300 million in aggregate principal amount of
9.75% senior secured notes due 2014 (the "notes") to be offered and
sold to qualified institutional buyers pursuant to Rule 144A and
outside the United States pursuant to Regulation S under the
Securities Act of 1933, as amended. The issue price is 98.093% plus
accrued interest, if any, from December 23, 2009, of the principal
amount of the notes. The closing of the transaction is expected to
occur on December 23, 2009, and is subject to customary closing
conditions. Geokinetics expects to receive net proceeds from the
offering of approximately $286.2 million, after deducting the
initial purchasers discounts and commissions and estimated offering
expenses. The notes will be guaranteed on a senior secured basis by
Geokinetics and each of its domestic subsidiaries. The notes and
the guarantees will be secured by liens on substantially all of the
assets of Geokinetics, Geokinetics Holdings USA and the subsidiary
guarantors. Geokinetics intends to use the net proceeds from this
offering to finance the cash portion of the acquisition of the
on-shore seismic and multi-client seismic library business of
Petroleum Geo-Services ASA and to repay current outstanding
indebtedness. The proceeds will be placed in an escrow account and
will be released to Geokinetics only upon the closing of the
above-referenced acquisition. The notes and the guarantees thereof
have not been registered under the Securities Act of 1933 or any
state securities laws, and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements under the Securities Act of 1933 and any
applicable state securities laws. This press release is neither an
offer to sell nor the solicitation of an offer to buy the notes or
any other securities and shall not constitute an offer,
solicitation or sale in any jurisdiction in which, or to any
persons to whom, such an offer, solicitation or sale is unlawful.
Any offers of the notes will be made only by means of an offering
memorandum. This press release is being issued pursuant to and in
accordance with Rule 135c under the Securities Act. About
Geokinetics Inc. Geokinetics Inc., based in Houston, Texas, is a
leading global provider of seismic acquisition and high-end seismic
data processing services to the oil and gas industry. Geokinetics
has strong operating presence in North America and is focused on
key markets internationally. Geokinetics operates in some of the
most challenging locations in the world from the Arctic to
mountainous jungles to the transition zone environments. This press
release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
All statements, other than statements of historical facts, included
in this press release that address activities, events or
developments that Geokinetics expects, believes or anticipates will
or may occur in the future are forward-looking statements. These
statements include but are not limited to statements about the
business outlook for the year, backlog and bid activity, business
strategy, related financial performance and statements with respect
to future events. These statements are based on certain assumptions
made by Geokinetics based on management's experience and perception
of historical trends, industry conditions, market position, future
operations, profitability, liquidity, backlog, capital resources
and other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of Geokinetics, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These include risks relating to
financial performance and results, job delays or cancellations,
reductions in oil and gas prices, the continued disruption in
worldwide financial markets, impact from severe weather conditions
and other important factors that could cause actual results to
differ materially from those projected, or backlog not to be
completed, as described in the Company's reports filed with the
Securities and Exchange Commission. Any forward-looking statement
speaks only as of the date on which such statement is made and
Geokinetics undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Contacts: Scott A. McCurdy Vice
President and CFO Geokinetics Inc. (713) 850-7600 DATASOURCE:
Geokinetics Inc. CONTACT: Scott A. McCurdy, Vice President and CFO
of Geokinetics Inc., +1-713-850-7600
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