ION Geophysical — Debt Investor Presentation (December 2020)
15 slides from ION Geophysical's debt investor presentation, Dec 23, 2020
Slide 1: Project Poseidon December 2020
Project Poseidon December 2020 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 The information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors
Slide 3: Potential Transaction Overview
Potential Transaction Overview ION Geophysical Corporation (“ION” or the “Company”) is a leading technology and data provider that delivers powerful data‐driven-decision making capabilities, boasts strong market fundamentals, and is well positioned to capture market share gains in the offshore pro
Slide 4: Senior Management Team
Senior Management Team v. Chris Usher President and CEO Matt Powers EVP, General Counsel & Corporate Secretary Mike Morrison EVP and CFO g Lisa Ruiz SVP, Human Resources bx N Ken Williamson EVP & COO, E&P Technology and Services Sheila Rodermund SVP & Chief Digital Officer Pid Dale Lambert EVP. Oper
Slide 5: Business Overview
Business Overview 5 ION delivers powerful data-driven decision-making to offshore energy, ports, and defense industries Strategic Focus Areas and Growth Opportunities Expected rebound in core market Provide new 3D multi-client data with higher earnings potential Diversify technologies into att
Slide 6: Significant Global Data Library
Significant Global Data Library Asset Value (NOLV) >$100M 355,000 sq km 3D and >740,000 km 2D 6 Access Exploration Appraisal Development Production E&P Lifecycle 2D 3D Historical ION Focus Providing New 3D Multi-client Data Higher resolution imagery for higher stakes decisions Subsurface Data
Slide 7: Offshore Optimization Software Market
Digitalization wave taking place offshore, opportunity for smarter, safer operations Software integrates data streams, improving situational awareness and planning – Combines operational plans with environmental data (vessels, ocean currents, weather, etc.) Enabled paradigm shift from radio an
Slide 8: Financial Summary
Financial Summary Key Assumptions: Revenue: – Modest improvement expected in 2nd half of FY 2021; recovery expected to take hold in FY2022 and beyond Operating Expenses: – Operating expenses in FY2021 and FY 2022 reflect recent cost reduction initiatives, modest growth in total operating expense
Slide 9: Investment Highlights
Investment Highlights 9 Strong Portfolio Base Global subsurface data library (740,000 km 2D and 355,000 sq km 3D) Well established and highly lucrative software portfolio covering the full value chain, including new logistics applications Substantial, well protected IP portfolio with ~500 pate
Slide 10: Summary of Noteholder Exchange Transaction Proposal
Summary of Noteholder Exchange Transaction Proposal 10 Key Terms Existing Notes Amount: $120.569 million Exchange Consideration: For each $1,000 of Existing Notes tendered, Eligible holders to receive: - $150 of cash, and - $850 of New 2nd Lien Convertible Notes (as described in more detail below),
Slide 11: Summary of Proposed Rights Offering Transaction & Backstop Agreement
Summary of Proposed Rights Offering Transaction & Backstop Agreement 11 Key Terms Total Rights Offering Amount: Each shareholder will be granted the right to buy their pro rata share of up to $50 million of either: (i) New 2nd Lien Convertible Notes, or (ii) New Shares of Common Stock Total Backstop
Slide 12: Sources & Uses / Pro-Forma Capitalization – Collar Midpoint
Sources & Uses / Pro-Forma Capitalization 12 Source & Uses Pro Forma Capitalization – Collar Midpoint (1) Assumes backstop fee is netted out of gross proceeds from backstop (2) Excludes Impact of Transaction Fees Assumptions: Total Amount of Notes 120,569 Total Amount of Commitments in Rights Offeri
Slide 13: Sources & Uses / Pro-Forma Capitalization – Lower Bound
Sources & Uses / Pro-Forma Capitalization 13 Source & Uses Pro Forma Capitalization – Collar Lower Bound Assumptions: Total Amount of Notes 120,569 Total Amount of Commitments in Rights Offering 25,000 % Participation 100% % of Rights Offering in New Notes 75% New 2L Notes Issued in Exchange 106,704
Slide 14: Sources & Uses / Pro-Forma Capitalization – Upper Bound
Sources & Uses / Pro-Forma Capitalization 14 Source & Uses Pro Forma Capitalization – Collar Upper Bound Assumptions: Total Amount of Notes 120,569 Total Amount of Commitments in Rights Offering 25,000 % Participation 100% % of Rights Offering in New Notes 75% New 2L Notes Issued in Exchange 106,704
Slide 15: Powering data-driven decisions
OM Powering data-driven decisions
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