CGG - Single Layer
CGG has finally pulled the trigger on the USD 1.2bn refinancings of its post-Sauvegarde capital structure, put in place in late 2017/early 2018. The transaction was generally expected, following the step down of the call price of the existing bonds.
The single layer of senior secured bonds will replace the existing 1st and 2nd lien bonds for the same overall amount.
As previously discussed, the refinancing reflects the undiminished value of CGG’s database and successful turnaround efforts, notably including the sale of its fleet, as much as the recovery in Brent crude prices.
We expect a significant reduction in the cost of debt from current levels, which should further lower CGG’s cash flow breakeven levels going forward.
Juliano
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E: jtorii@sarria.co.uk
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