HOUSTON, Feb. 21, 2018 /PRNewswire/ -- ION Geophysical Corporation (NYSE: IO) today announced the successful completion of a public equity offering to begin delevering its business. ION issued and sold 1,820,000 shares of common stock at a public offering price of $27.50 per share, and warrants to purchase an additional 1,820,000 shares of ION's common stock. The net proceeds from this offering were $47,547,500, excluding transaction expenses. The net proceeds will primarily be used to retire ION's third lien indentures of $28,500,000 on or prior to the May 15, 2018 maturity date and for general corporate purposes. The warrants have an exercise price of $33.60 per share, are immediately exercisable and expire on March 21, 2019. If the warrants are exercised in full prior to their expiration, ION would receive additional proceeds of $61,152,000.
"The successful equity offering is not only an endorsement of our asset light strategy, but also a recognition of the velocity in our business and our underlying value," stated Brian Hanson, ION's President and Chief Executive Officer. "While we had sufficient liquidity to retire the third lien bond maturing this May, these additional funds will further strengthen our balance sheet and enable us to be opportunistic and support continued diversification into adjacent markets. I'm really pleased with the transaction. The combination of the capital we raised today plus the potential exercise of the warrants in the next 13 months, along with our current liquidity and free cash flow throughout 2018, should position us with excess cash by early 2019 well in advance of the second lien indentures coming due in 2021."
ION develops and leverages innovative technologies, creating value through data capture, analysis and optimization to enhance critical decision-making, enabling superior returns. For more information, visit iongeo.com.
ION (Investor relations)
Executive Vice President and Chief Financial Officer
Steve Bate, +1 281.552.3011
EVP, General Counsel & Corporate Secretary
Matthew Powers, +1 713.366.7226
The information herein contains certain 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. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services, pricing pressure, decreased demand, and changes in oil prices; and political, execution, regulatory, and currency risks. These risks and uncertainties include risks associated with the WesternGeco litigation and other related proceedings. We cannot predict the outcome of this litigation or proceedings. For additional information regarding these various risks and uncertainties, including the WesternGeco litigation, see our Form 10-K for the year ended December 31, 2017, filed on February 8, 2018. Additional risk factors, which could affect actual results, are disclosed by the Company in its fillings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.
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SOURCE ION Geophysical Corporation