Sceismic vessel owner PGS is on course for a major refinancing running to $675m.
Oslo-listed PGS announced after the close on Monday that it was targeting the new debt to repay a bank loan and bond debt.
Gottfred Langseth, chief financial officer of PGS, had told investors at the end of the first quarter the company was likely to refinance this year and was in a position to execute at short notice.
PGS explained today it had begun the process to raise $525m from a five-year term loan and a further $150m in second lien debt.
This will be used to repay a $380m term loan and $212m in senior notes due in 2021 and 2020 respectively.
A book-building process for the new debt is underway and is set to close in mid-June.
A presentation revealing further details is expected to be released to investors by tomorrow morning.
The company had net interest-bearing debt, excluding lease liabilities, $1.05bn at the end of the first quarter, down by $100m on the previous year.
At the same time it had liquidity reserve of $205.4m, an increase of approximately $55m in the quarter.
