26 April 2018
Linklaters advises CGG on US$300m and €280m High Yield Notes IssuanceLinklaters advised CGG on an issuance by its wholly-owned indirect subsidiary, CGG Holding (U.S.) Inc., of US$300 million aggregate principal amount of 9.000% first lien senior secured notes due 2023 and €280 million principal amount of 7.875% first lien senior secured notes due 2023.
The proceeds of the issuance were used, together with cash on hand, to redeem in full the entire outstanding principal amount of CGG Holding (U.S.) Inc.’s existing $663.6 million first lien senior secured notes (the “Existing First Lien Notes”) in accordance with their terms. The Existing First Lien Notes were issued in the context of the CGG group’s financial restructuring in February 2018.
The refinancing of the Existing First Lien Notes allows the CGG group to save a 3% rollover fee (representing approximately $20 million) that would have been payable on the Existing First Lien Notes if they were still outstanding as of May 21, 2018, reduces the CGG group’s interest cost compared to the Existing First Lien Notes (which bore cash interest at a rate equal to three-month LIBOR plus 6.50% per annum and interest paid-in-kind at 2.05% per annum) and provides a shorter non call period (April 2020 under the new first lien notes versus February 2021 under the Existing First Lien Notes).
Luis Roth, Capital Markets partner, Paris said:
“We are very pleased to have assisted CGG in this successful refinancing transaction following on from the group’s recent restructuring on which we also advised,”The Linklaters team was led by Capital Markets partner Luis Roth and associates Sonny Ha and David Adler (Paris). The Linklaters team also included Banking partner Kathryn Merryfield, managing associate Lauren Hanley, associates Marie-Aude Deslandes and Elisabeth Ribeiro (Paris) and counsel Gordon Mak and associate Michelle Zheng (New York). Partners Alexander Harmse and Mees Roelofs, managing associate Menno Baks, associates Charlie Jenkins and Nadia Ayrir (Amsterdam) advised on matters of Dutch law. Tax advice was provided by partner Cyril Boussion and associate Nadine Eng (Paris) and U.S. senior associate Matthew Brigham and associate Kate Long (New York).