Seitel (NASDAQ:SEIEQ)
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Seitel Announces Pricing of Private Offering of $193,000,000
Aggregate Principal Amount at Maturity of 11 - 3/4% Senior Notes due 2011
HOUSTON, June 28 /PRNewswire-FirstCall/ -- Seitel, Inc. (OTC:SEIEQ) (BULLETIN
BOARD: SEIEQ) , today announced that it has entered into a purchase agreement
for a private offering of $193,000,000 aggregate principal amount at maturity
of 11 - 3/4% senior unsecured notes due 2011. The notes are being offered to
investors at a price of 97.675% of principal amount resulting in gross proceeds
to Seitel of approximately $188.5 million. This private offering is one of the
necessary funding components of Seitel's chapter 11 plan of reorganization,
which was confirmed by the U.S. bankruptcy court on March 18, 2004 (the
"Plan"). The notes will mature on July 15, 2011, and interest on the notes
will be payable semi-annually in arrears on January 15 and July 15 of each
year, commencing on January 15, 2005. Subject to market and other customary
conditions, consummation of the private offering of the notes is expected to
occur on July 2, 2004, which is the anticipated effective date of the Plan.
Upon consummation of the offering, Seitel will deposit the entire net proceeds
from the sale of the notes together with an additional cash amount into escrow
pending the completion of equity financing transactions contemplated by the
Plan that will provide additional funds which, upon the release from escrow of
the net proceeds from the notes offering, will be used in the aggregate,
together with certain cash on hand, to pay 100% of allowed creditors' claims,
together with post-petition interest, as required under the Plan. The deposit
of the net proceeds of the notes offering into escrow is one of the conditions
to effectiveness of the Plan.
Seitel is not registering the offer and sale of the notes under the Securities
Act of 1933, as amended (the "Securities Act"), or under any state securities
laws. The notes will be issued to the initial purchasers thereof in a private
offering under Section 4(2) of the Securities Act, and the initial purchasers,
in turn, will resell the notes only (i) to "qualified institutional buyers" in
reliance on the exemption from registration pursuant to Rule 144A under the
Securities Act and (ii) outside the United States in offshore transactions to
non-U.S. persons in reliance on Regulation S under the Securities Act. The
notes may not be offered or sold within the U.S. or to, or for the account or
benefit of, any U.S. person unless the offer or sale is registered under, or
would qualify for an exemption from the registration requirements of, the
Securities Act and applicable state securities laws. This press release shall
not constitute an offer to sell, or the solicitation of an offer to buy, nor
shall there be any sale of the notes in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
ABOUT SEITEL
Seitel is a leading provider of seismic data and related geophysical services
to the oil and gas industry in North America. Oil and gas companies to assist
in the exploration for and development and management of oil and gas reserves
use Seitel's products and services. Seitel has ownership in an extensive
library of proprietary onshore and offshore seismic data that it has
accumulated since 1982 and that it offers for license to a wide range of oil
and gas companies. Seitel believes that its library of onshore seismic data is
one of the largest available for licensing in the United States and Canada.
Seitel's seismic data library includes both onshore and offshore three-
dimensional (3D) and two-dimensional (2D) data and offshore multi-component
data. Seitel has ownership in approximately 32,000 square miles of 3D and
approximately 1.1 million linear miles of 2D seismic data concentrated
primarily in the major North American oil and gas producing regions. Seitel
markets its seismic data to over 1,300 customers in the oil and gas industry,
and it has license arrangements with in excess of 1,000 customers.
Statements in this press release about the future outlook related to Seitel
(including its plans to consummate the notes offering and the anticipated use
of the net proceeds of the notes offering) involve known and unknown risks and
uncertainties, which may cause Seitel's actual results to differ materially
from expected results. While Seitel believes its forecasting assumptions are
reasonable, there are factors that are hard to predict and influenced by
economic and other conditions that are beyond its control. Among the other
important factors which could cause actual results to differ materially from
those in the forward-looking statements are the failure of the Plan to
otherwise become effective, market conditions and other factors beyond Seitel's
control, including the risk factors and other cautionary statements detailed in
the Disclosure Statement relating to the Plan or in Seitel's filings with the
Securities and Exchange Commission, including its most recent Form 10-K Annual
Report, a copy of which may be obtained from Seitel without charge.
Contact Information
Leonard M. Goldstein, Corporate Counsel
Robert D. Monson, Chief Financial Officer
Telephone: 713-881-8900
DATASOURCE: Seitel, Inc.
CONTACT: Leonard M. Goldstein, Corporate Counsel or Robert D. Monson,
Chief Financial Officer, +1-713-881-8900, both of Seitel, Inc.
Web site: http://www.seitel-inc.com/