(Adds mandatory offer)
OSLO (Thomson Financial) - Norwegian seismic energy explorer Petroleum Geo-Services said it is to make an offering of approximately 400 mln usd in convertible notes due 2012 to fund the acquisition of Arrow Seismic ASA.
The group also announced, separately, that it will make a mandatory offer for all the shares it currently does not own in Arrow. PGS, which currently owns 91 pct of the target group, made the offer at 96 nkr.
The offer will be sent to shareholders on December 4.
PGS said the 400 mln usd in convertible notes will be convertible into ordinary shares of PGS.
'The offering is being made to put in place long term financing for the acquisition of Arrow Seismic while increasing financial flexibility for the future.'
PGS said the final size of the transaction, to be determined at the time of pricing, is expected to be convertible into approximately 9.8 mln shares, or 5.4 pct of PGS' outstanding share capital.
'The convertible notes are expected to carry a coupon of between 2.2-2.7 pct per annum, and the conversion price is expected to be set at a premium of between 40-45 pct to the volume weighted average price of PGS' ordinary shares from launch to pricing,' it said.
The notes are expected to price today, and PGS said closing is expected on or about Dec 20. patrick.mcloughlin@thomson.com pm/jlc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
