ION announces forbearance and amendment related to its revolving credit agreement, forbearance agreement related to its senior secured second priority notes due 2025, and preliminary fourth quarter 2021 revenues of ~$40 million, a 45% increase year-over-year
HOUSTON, Jan. 14, 2022 (GLOBE NEWSWIRE) -- ION Geophysical Corporation (NYSE: IO)
Forbearance and Amendment related to Revolving Credit Agreement, Forbearance Agreement related to Senior Secured Second Priority Notes due 2025
ION announced that it has entered into a Forbearance and Fifth Amendment with PNC Bank, National Association (“PNC”), under its Revolving Credit and Security Agreement dated August 22, 2014 (as amended, the “Credit Agreement”), pursuant to which PNC has agreed to waive, through and including February 15, 2022, a cross default that would have occurred under the Credit Agreement as ION has not yet paid the scheduled interest payment due on December 15, 2021, on its 8.00% Senior Secured Second Priority Notes due 2025 (the “2025 Notes”) prior to the expiration of the 30-day grace period under the 2025 Notes indenture. In addition, ION also announced that it had entered into agreements with holders of more than 79% of its 2025 Notes to forbear until February 15, 2022 from enforcing their rights and remedies arising as a result of ION’s failure to make the December 15, 2021 interest payment due on the 2025 Notes. The forbearances are subject to the terms and conditions of the relevant agreements with PNC and the note holders, which are described in more detail in our current report on Form 8-K filed with the SEC.
ION remains in continuing discussions with PNC and the holders of its 2025 Notes and other indebtedness regarding various strategic alternatives to strengthen its financial position and maximize stakeholder value. These strategic alternatives include, among others, a sale or business combination transaction or sales of assets, any of which may be executed as part of an in-court or out-of-court restructuring process.
Preliminary fourth quarter 2021 revenues of ~$40 million, a 45% increase year-over-year
ION also announced that the Company expects fourth quarter 2021 revenues to be approximately $40 million, an increase of 45% year-over-year. While expected fourth quarter 2021 revenues declined by 10% sequentially, second half fiscal year revenues delivered an increase of approximately 150% over the first half year’s revenues.
“Fourth quarter revenues improved year-over-year, consistent with our expectations of momentum building from our growing data library and maritime digitalization strategy,” said Chris Usher, ION’s President and Chief Executive Officer. “Sales of the latest phases of our Brazil 3D reprocessing program, Picanha, illustrate the value clients ascribe to this program which now tops over 150,000 contiguous square kilometers in the Campos and Santos basins. The third and fully underwritten extension of our new 3D program in the North Sea has concluded acquisition for the season. Our traditional BasinSPAN 2D programs continue to demonstrate resilience through sales in Africa and Brazil, despite the pullback in exploration spending. And lastly, our software business continues to expand into new markets. On December 17, 2021, we announced awards for MarlinTM in the areas of simultaneous operations and country-scale port management. Our latest contract is for a five-year deployment of Marlin to optimize offshore logistics in the Asia Pacific region for a supermajor.”
