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Viridien — CGG — Debt Investor Presentation (June 2017)
16 slides from Viridien's debt investor presentation, Jun 15, 2017
Slide 1: Financial Restructuring Agreement with main creditors and DNCA: Key terms
Financial Restructuring Agreement with main creditors and DNCA: Key terms June 14th, 2017
Slide 2: Disclaimer
Disclaimer 7 This presentation has been prepared by CGG S.A. (“CGG”) in the context of the negotiations between it and certain of its creditors and other stakeholders in respect of a potential restructuring plan. It is not intended for, and may not be used for, any other purposes. This document cont
Slide 3: Agreement: in line with agreement in principle
Agreement : in line with agreement in principle 8 The key terms of the agreement dated June 14 (described below) are in line with those of the agreement in principle published on June 2, 2017 with the following changes or precisions (other than minor or technical issues): The Rights Issue with warra
Slide 4: Agreement: Equitization of the Unsecured Debt
Agreement : Equitization of the Unsecured Debt 9 Summary of Main Economic Terms Treatment of the Unsecured Debt Coupon HYB: $86m accrued and unpaid interest to be paid on closing with new HY Bonds CB: $5m1 accrued and unpaid interest to be paid on closing in cash Reserved Capital Increase to HY Bond
Slide 5: Agreement: New Money
Agreement : New Money 10 Summary of Main Economic Terms $125m Rights Issue with Warrants (ABSA) limited to Existing Shareholders Issuing New Shares at $1.75 coupled with Warrants #2 with a strike price per new share of $4.5 / 5 year maturity Each new money share gives access to 1 warrant #2. 3 Warra
Slide 6: Agreement: Governance
Agreement: Governance 11 Governance The structure and composition of the Company’s board of directors after completion of the Restructuring will be determined in consultation with DNCA and the members of the Ad Hoc Senior Noteholder Committee who will have become and remain shareholders of the Compa
Slide 7: Details of the Agreement
Details of the Agreement ccc egg.com Passion for Geoscience
Slide 8: Areas to Be Addressed: Headline Terms
Areas to Be Addressed Headline Terms Borrower CGG Holdings Inc. (US) Form Bond format NY Law Guarantors Adjusted guarantee package compared to existing package, reflecting release of following guarantors: CGG MRN, CGG Holding UK I, CGG Holding UK II, Sercel Inc, Sercel GRC Additional guarantors to b
Slide 9: Areas to Be Addressed: Headline Terms
Areas to Be Addressed Headline Terms Early Prepayment Callable at par (in whole but not in part) at any time during the first 6 months after Closing Date (for avoidance of doubt from end of month 3 the repayment will be inclusive of the 3% roll-over fee that will be PIKed) ; Non-call between months
Slide 10: Areas to Be Addressed: Headline Terms
Areas to Be Addressed Headline Terms Issuer CGG SA Format: US$ documentation consistent with existing US$ HYB Amount $375m in cash (i) USD Tranche and (ii) EUR Tranche for up to USD100 million $86m from the payment of accrued and unpaid Coupon Ranking Adjusted guarantee package compared to existing
Slide 11: Areas to Be Addressed: Headline Terms
Areas to Be Addressed Headline Terms Call Year 1: 120% Year 2: 120% Year 3: 112.5% From Year 4: par Covenants Incurrence based covenants only, consistent with existing US$ HYB due 2022 subject to increase in baskets for operational purposes and flex for incurrence of $200m additional debt for new se
Slide 12: Agreement: Indicative Equity Ownership
17 Shareholding Pre New Money (Pre Penny Warrants) Post Debt Equitisation Including Warrants 1 Existing shareholders 4.4% 9.8% Convert. Bonds 7.0% 6.7% HYB 88.5% 83.6% Total 100% 100% Shareholding Post New Money Post Debt Equitisation Including Warrants 1 Including Warrants 2 Existing shareholders 1
Slide 13: Leverage and liquidity pro-forma after the financial restructuring
Leverage and liquidity pro-forma after the financial restructuring
Slide 14: Group Leverage: back below 1.5x beginning of 2018
Based on mid-point of Business Plan targets, post Restructuring, Net Financial Debt* over EBITDA ratio below the 1.5x area * Here-shown excluding Capital Lease Group Leverage: back below 1.5x beginning of 2018 19
Slide 15: Restructuring Savings (over 2017-2019)
Restructuring Savings (over 2017-2019) ML mitigation & Nordic Loan: c. $300m Cost of Debt reduction net of fees: c. $200m Additional Liquidity Net New Money: c. $300m Basket for new Secured debt: c. $200m Group Liquidity: $1bn improvement at YE 2019 horizon 20
Slide 16: Thank You
Thank You THIS FORM 6-K REPORT IS HEREBY INCORPORATED BY REFERENCE INTO CGG’S REGISTRATION STATEMENT ON FORM S-8 (REGISTRATION STATEMENT NO. 333-150384, NO. 333-158684, NO. 333-166250, NO. 333-173638, NO. 333-188120 AND NO. 333-197785) AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT I