French geoscience company CGG is proposing a US$378.9 million (€350 million) capital increase to finance its “Transformation Plan,” which the company first implemented in 2013.
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The Oceanic Vega. Image from CGG. |
The firm called a general shareholders’ meeting to delegate authority to the board of directors on the capital increase by issuance of ordinary shares, with preferential rights for shareholders.
“This strengthening of the group’s equity would complement its current refinancing transactions. The approximately $126 million of CGG’s $135 million outstanding 2017 bonds that have been tendered for cancellation during the early tender period of CGG Holding (US) Inc.’s ongoing exchange offer and the $91.1 million (€84 million) Fugro loan will be replaced by a secured term loan due 2019. At the end of this process, most of CGG’s 2016/2018 mid-term debt will have been rescheduled,” CGG said.
Subject to approval, CGG will launch the capital increase as soon as possible.
In early November, CGG announced its decision to cut 950 jobs worldwide, in addition to reducing its vessel fleet to five by Q2 2016.
Upon activating its Transformation Plan in 2013, CGG intended to reduce its fleet program from 18 vessels to 13, but the plan was revised to 11 3D vessels in Q4 2014. The number has since dropped dramatically.
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