CGG announced today that CGG S.A. has successfully priced an offering of US$500 million in aggregate principal amount of 8.75% senior secured notes due 2027 and €585 million in aggregate principal amount of 7.75% senior secured notes due 2027. 

The Notes will be guaranteed on a senior secured basis by certain subsidiaries of CGG S.A. and will be issued at par and are expected to be issued on April 1, 2021. 

CGG will also enter on the Issue Date into a US$100,000,000 super senior Revolving Credit Facility (RCF) agreement secured by the same security package as the Notes with its pricing linked in part to greenhouse gas emission reduction targets. No drawings are expected under the RCF as at the date of the Offering.

Sophie Zurquiyah, Chief Executive Officer of CGG S.A., said: 
“Our successful over-subscribed debt refinancing highlights the financial market’s confidence in our company, our asset-light, people, data and technology strategy and our future outlook. With this transaction, we have streamlined our capital structure, which is now more flexible, less expensive and includes a credit facility. We have solid liquidity and expect positive net cash flow generation in 2021 and beyond. We look forward to further growing our company and delivering increased value to all our stakeholders.”

CGG intends to use the net proceeds from this Offering, together with cash on hand, to:

• repurchase, by way of the tender offer (the “Tender Offer”) launched on March 15, 2021 and expiring on March 29, 2021 (with settlement expected on the Issue Date) by CGG Holding (U.S.) Inc., for any and all of its first lien senior secured notes due 2023 issued in a principal amount of US$300,000,000 and €280,000,000 (the “Existing First Lien Notes”);
• satisfy and discharge on the Issue Date and subsequently redeem on May 1, 2021 the Existing First Lien Notes that are not repurchased in the Tender Offer; 
• satisfy and discharge on the Issue Date and subsequently redeem on April 14, 2021 in full the second lien senior secured notes due 2024 issued by CGG S.A. in a principal amount of US$355,141,000 and €80,372,000; and
• pay all fees and expenses in connection with the foregoing.

KeyFacts Energy Industry Directory: CGG