Carnegie Investment Bank is proud to have acted as Sole Bookrunner in PGS’ successful NOK 800 million directed share issue.
PGS is currently seeing an ongoing market recovery with strengthening demand for its marine geophysical services, and expects that markets will improve further throughout 2022 and onwards. This in combination with a better supply / demand balance, with a relatively concentrated supply side, supports an encouraging fundament for PGS going forward.
The company intends to use the net proceeds from the directed share issue for payment of debt amortization in Q3 2022; increased buffer to the minimum liquidity covenant in existing loan agreements; together with the ongoing market recovery in the marine geophysics market, further strengthen the company’s balance sheet ahead of the Q3 2023 refinancing need; and for general corporate purposes.
Completion of the transaction is subject to EGM approval (expected 27 May 2022) and the company having obtained commitments to the satisfaction of the company for approximately USD 50 million in new, senior secured debt on terms and conditions acceptable to the company by the time of the EGM.
Carnegie congratulates Rune Olav Pedersen, Gottfred Langseth and the rest of the PGS team with the successful transaction, and we look forward to continuing our support of PGS going forward.