We provide a unique range of technologies, services and equipment designed to deliver geoscience solutions right across the Exploration & Production life cycle.
View all our multi-client data in your area. Explore the new and improved CGG GeoStore interactive map.
Get to know the mission, vision and values that drives us.
Learn how CGG's leaders and governance allow for successful operations.
Operating safely and with integrity in order to deliver sustainable performance.
CGG recognizes the 10 UNGC principles and publishes annually its communication on progress.
You’ll discover a place where you’ll continue to grow as you work with other talented professionals around the world.
Explore an extraordinary opportunity to help create the future solutions of geoscience challenges.
Our range of geoscience experience is unparalleled and leads us to invent and perfect technology and techniques unlike any other.
GeoTraining brings together the full breadth of CGG’s skill development programs to provide the E&P industry with comprehensive geoscience workforce learning path programs.
Expert, independent advice on the most appropriate satellite imagery (optical, radar) and elevation data products.
The benchmark for petrophysics, rock physics, facies analysis and statistical mineralogy. Collaborative multi-well log analysis made easy for better drilling decisions.
Paris, France – 6 February 2017
CGG S.A. (“CGG”) today announces that it is soliciting consents (the “Solicitation”) to permit the appointment of a ‘mandataire ad hoc’ (a French facilitator for creditor negotiations) from (i) the holders of each series of Senior Notes and (ii) the creditors under the Term Loan B.
“Senior Notes” means CGG’s 7.750% Senior Notes due 2017 (CUSIP: 204386AK2 / ISIN: US204386AK24), 6.500% Senior Notes due 2021 (CUSIP: 204384AB7 / ISIN: US204384AB76; CUSIP: F1704UAD6 / ISIN: USF1704UAD66), 5.875% Senior Notes due 2020 (Reg. S ISIN: XS1061175607 / Reg. S Common Code: 106117560; Rule 144A ISIN: XS1061175862 / Rule 144A Common Code: 106117586) and 6.875% Senior Notes due 2022 (Reg. S CUSIP: F1704UAC8 / Reg. S ISIN: USF1704UAC83; Registered CUSIP: 12531TAB5 / Registered ISIN: US12531TAB52).
“Term Loan B” means the $342 million term loan facility with CGG’s subsidiary, CGG Holding (US) Inc., as borrower.
Rationale for the solicitation
CGG announced on January 5, 2017 that in a difficult market environment expected to remain similar in 2017, it considered that the Group’s debt level was too high. It therefore intends to commence discussions with all its stakeholders in their various jurisdictions in order to achieve a financial restructuring. The objective of this restructuring would be to provide CGG with a level of indebtedness and cost of debt that is substantially reduced and sustainably adapted to its revenues. To that end, CGG will make proposals to its creditors and to its shareholders. The market will be informed in due time of the outcome of these discussions.
In order to facilitate discussions with all of its stakeholders, CGG wishes to have the ability to request the appointment of a mandataire ad hoc, which requires the agreement of the relevant creditors in accordance with various credit agreements and bond documents.
The purpose of the Solicitation is to obtain the consent, at the requisite majority, of (i) the holders of each series of Senior Notes and (ii) the creditors under the Term Loan B such that CGG would have the option, if desired, to request the appointment of a mandataire ad hoc, without such action constituting an Event of Default under the Senior Notes and Term Loan B documentation.
CGG has had discussions regarding this Solicitation with an ad hoc Committee of its Senior Notes who represent 36.75% of the 6.500% Senior Notes due 2021, 9.03% of the 5.875% Senior Notes due 2020 and 46.99% of the 6.875% Senior Notes due 2022. The ad hoc committee members have advised CGG that they will support the Solicitation with respect to the Senior Notes. CGG has had similar discussions with holders representing 79.9% of the Term Loan B. These holders have indicated that they will support the Solicitation with respect to the Term Loan B.
To date, CGG has already secured the requisite consent of the lenders under its French revolving credit facility, the US revolving credit facility of CGG Holding (US) Inc. and the Nordic credit facility of its subsidiary CGG Geo Vessels to the potential appointment of a mandataire ad hoc.
CGG confirms that it has not yet decided whether or not to seek the appointment of a mandataire ad hoc and has not taken any steps to appoint a mandataire ad hoc. CGG remains in full compliance under its Senior Notes and loan documentation.
Details of the solicitation
The Solicitation with respect to the Senior Notes will expire at 5:00 pm New York City time on February 17, 2017 unless extended by CGG.
The Solicitation with respect to the Term Loan B will expire at 5:00 pm New York City time on February 10, 2017 unless extended by CGG.
CGG has retained Lucid Issuer Services to serve as its Tabulation and Information Agent for the Solicitation with respect to the Senior Notes. Copies of the Consent Solicitation Statement can be obtained from Lucid Issuer Services Limited (Attention: Yves Theis / Thomas Choquet, +44 (0) 20 7704 0880, email@example.com).
CGG is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry.