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Viridien — CGG — Debt Investor Presentation (July 2017)

26 slides from Viridien's debt investor presentation, Jul 28, 2017

  1. Slide 1: Presentation of the French Safeguard Plan

    Presentation of the French Safeguard Plan Bondholders’ general meeting – July 28, 2017 All results are presented before Non-Recurring Charges & write-off, unless stated otherwise

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements about CGG (“the Company”) plans, strategies and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore,

  3. Slide 3: Agenda

    Agenda  Financial restructuring in progress  Headline Terms of the Plan  Financial objectives met 3

  4. Slide 4: Financial restructuring in progress

    Financial restructuring in progress 4

  5. Slide 5: CGG's Priorities

    CGG’s Priorities  Protect the corporate interest of the Company and the full value of its businesses  Timetable to deliver the targeted financial restructuring is of the essence in the present market environment  Preserve the Group’s integrity  Highly interlinked technologies, production units a

  6. Slide 6: Financial restructuring objectives

    Financial restructuring objectives  Norwegian legacy Maritime Liabilities and Nordic Debt fully addressed in Q1  c. $200m nordic debt externalization and extension from 2019 up to 2027  Full equitization of the principal amount of the unsecured debt leading to substantial Group deleveraging  $1.

  7. Slide 7: Restructuring of the debt according to its seniority

    Restructuring of the debt according to its seniority Gross amount Restructuring Maturity extended by + Secured debt c. $800m fully secured and guaranted 5 years to 2023 Up to $150m repayment No claim equitization Level of seniority Full equitization at €3.12 per share c. $1,500m unsecured High Yield

  8. Slide 8: Pre-arranged restructuring in France and in the US

    Pre-arranged restructuring in France and in the US  Comprehensive safeguard proceedings  Opening of French Safeguard proceedings (procédure de sauvegarde) in respect of CGG SA, the group parent company, on June 14, 2017  Helene Bourbouloux, former mandataire ad hoc, appointed as judicial administ

  9. Slide 9: Headline Terms of the Plan

    Headline Terms of the Plan GCGG Passion for Geoscience

  10. Slide 10: Equitization of the Unsecured Debt

    Equitization of the Unsecured Debt SUMMARY OF MAIN ECONOMIC TERMS  HYB: up to $86m accrued and unpaid interest to be paid on closing with new HY Bonds or Treatment of the termed-out over a 10 year period (Y1 and Y2: 1%/ Y3–Y9: 5%/ Y10: 63%) Unsecured Debt Coupon  CB: $5m1 accrued and unpaid intere

  11. Slide 11: Treatment of the Secured Lenders (US & French RCF and TLB) - 1/2

    Treatment of the Secured Lenders (US & French RCF and TLB) -1/2 AREAS TO BE ADDRESSED HEADLINE TERMS OPTION 1 to be expressly chosen by French RCF lenders // Only option for US RCF and TLB lenders Borrower  CGG Holding (US) Inc.  Bond format Form  NY Law  Adjusted guarantee package compared to e

  12. Slide 12: Treatment of the Secured Lenders (US & French RCF and TLB) - 2/2

    Treatment of the Secured Lenders (US & French RCF and TLB) - 2/2 AREAS TO BE ADDRESSED HEADLINE TERMS  Any net new money amount above $250m (incl. New money capital increase) after fees would pay-down secured debt subject Upfront Paydown to a cap of $150m (on a pro rata basis between French RCF, US

  13. Slide 13: New Money

    New Money SUMMARY OF MAIN ECONOMIC TERMS  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 Warrants # 2 give right to subscribe to 2 new shares $125m Rights Issue  Open to all exi

  14. Slide 14: New HYB Terms (1/2)

    New HYB Terms (1/2) AREAS TO BE ADDRESSED HEADLINE TERMS  CGG SA Issuer  Format: US$ documentation consistent with existing US$ HYB  $375m in cash Amount  (i) USD Tranche and (ii) EUR Tranche for up to USD100 million  Up to $86m from the payment of accrued and unpaid Coupon (if the HYB holders

  15. Slide 15: New HYB Terms (2/2)

    New HYB Terms (2/2) AREAS TO BE ADDRESSED HEADLINE TERMS  Year 1: 120%  Year 2: 120% Call  Year 3: 112.5%  From Year 4: par  Incurrence based covenants only, consistent with existing US$ HYB due 2022 subject to increase in baskets for Covenants operational purposes and flex for incurrence of $2

  16. Slide 16: Shareholding post financial restructuring

    Shareholding post financial restructuring Post Debt Including Shareholding Pre New Money (Pre Penny Warrants) Equitisation Warrants 1 Existing shareholders 4,4% 9,8% Convertible bondholders 7,0% 6,6% Senior Notes holders 88,5% 83,6% Total 100% 100% Post Debt Including Including Shareholding Post New

  17. Slide 17: Governance

    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 Company. Governance Such pro

  18. Slide 18: Financial objectives met

    Financial objectives met GCGG Passion for Geoscience

  19. Slide 19: Nordic debt restructuring

    Nordic debt restructuring  Norwegian legacy Maritime Liabilities and Nordic Debt fully addressed in Q1  c. $200m nordic debt externalization and extension from 2019 up to 2027 Maritime Costs Profile as of 31/12/2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Maritime Costs Profile post

  20. Slide 20: $2.1bn Net Debt reduction by YE 2017 on pro forma basis

    $2.1bn Net Debt* reduction by YE 2017 on pro forma basis  Net Debt before restructuring  Net Debt after restructuring  $2.45bn by YE 2016  $0.45bn by YE 2016 (pro forma basis)  $2.85bn target by YE 2017  $0.725bn target and pro forma by YE 2017 = $(2.1)bn reduction 20 * Net Debt including Capi

  21. Slide 21: Senior debt profile: maturities moved to 2023/2024

    Senior debt profile: maturities moved to 2023/2024  Senior debt down from $2.75bn before Restructuring to $1.1bn post restructuring  Maturities extended to January 2023 and January 2024, assuming January 2018 for the Restructuring completion date  Average cost of debt at 7.0% cash + 5.0% PIK  c.

  22. Slide 22: Group Leverage: back below 2x beginning of 2018

    Group Leverage: back below 2x beginning of 2018 Based on mid-point of Business Plan targets, post Restructuring, Net Financial Debt* over EBITDA ratio below 2x 22

  23. Slide 23: Group Liquidity: $1bn improvement at YE 2019 horizon

    Group Liquidity: $1bn improvement at YE 2019 horizon Restructuring Savings (over 2017-2019) Additional Liquidity  ML mitigation & Nordic Loan: c. $300m  Net New Money: c. $300m  Cost of Debt reduction net of fees: c. $200m  Basket allowing for new Secured debt: c. $200m 23

  24. Slide 24: Appendix

    Appendix 24

  25. Slide 25: Business Allocation Grid to Relevant Sub-Groups

    Business Allocation Grid to Relevant Sub-Groups BUSINESS GUARANTEED NOT GUARANTEED Title Region Entity Secured Unsecured Secured Unsecured Multi-Client MC Land NAM CGS (US) Inc 100% MC GoM NAM CGS (US) Inc 100% MC Mexico LAM Other 100% MC Brazil LAM CGS SAS 100% MC UK NEUR CGS (UK) Ltd 100% MC North

  26. Slide 26: Thank you

    Thank you (ccc Visit our website at cgg.com Passion for Geoscience

CGG — Debt Investor Presentation (July 2017) on 6ix