Seismic vessel owner PGS has axed a major refinancing plan in which it had hoped to raise up to $675m, due to lack of investor appetite.
"As a result of increased volatility in the capital markets and investor sentiment towards oil field service post-launch, PGS has not been able to reach the targeted terms and has decided to withdraw the proposed transaction," the Oslo-listed company said in a filing Wednesday.
The prospective financing had consisted of a $525m five-year term loan and around $150m in second lien notes.
The proceeds were intended to repay PGS's existing $212m in senior notes, which are due in December 2020, plus its $380m term loan that is set to mature in March 2021, as well as to reduce drawings under its revolving credit facility.
PGS said it expects to refinance these facilities in 2019 instead.
In the meantime, PGS is hoping that an upturn in revenue from the seismic survey market will help it to service its debt.
"The marine seismic market is in recovery with increased activity levels and a significant improvement in pricing for contract services," the company said.
"PGS expects to generate positive cash flow and reduce debt in 2019."
The company had net interest-bearing debt, excluding lease liabilities, of $1.05bn at the end of the first quarter this year. It also had liquidity reserves of $205.4m.
