Seitel (NASDAQ:SEIEQ)
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Seitel Announces Proposed $190 Million Private Offering of Senior
Notes Due 2012
HOUSTON, June 10 /PRNewswire-FirstCall/ -- Seitel, Inc. (OTC:SEIEQ) (BULLETIN
BOARD: SEIEQ) (TSE:OSL), today announced that it proposes, subject to market
and other customary conditions, to commence a private offering of $190 million
aggregate principal amount of new senior unsecured notes due 2012 as provided
in its chapter 11 plan of reorganization, which was confirmed by the U.S.
Bankruptcy Court on March 18, 2004 (the "Plan").
Upon the completion of the offering, the entire net proceeds from the sale of
the new senior notes will be deposited by Seitel 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.
Seitel can give no assurance that the proposed offering of new senior notes
will be completed. Seitel is not registering the offer and sale of the new
senior notes under the Securities Act of 1933, as amended (the "Securities
Act"), or under any state securities laws. The new senior 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 new senior 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 new senior 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. Our products and services are
used by oil and gas companies to assist in the exploration for and development
and management of oil and gas reserves. Seitel has ownership in an extensive
library of proprietary onshore and offshore seismic data that we have
accumulated since 1982 and that we offer for license to a wide range of oil and
gas companies. We believe that our library of onshore seismic data is one of
the largest available for licensing in the United States and Canada. Our
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 we have 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 offer the new senior notes and consummate the offering,
the anticipated terms of the notes and the anticipated use of the net proceeds
of the 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.
DATASOURCE: Seitel, Inc.
CONTACT: Leonard M. Goldstein, General Counsel, or Robert D. Monson,
Chief Financial Officer, both of Seitel, Inc., +1-713-881-8900
Web site: http://www.seitel-inc.com/