CGG Announces the launch of €350M rights offering (90.7% of market cap)
CGG announces the launch of ~ EUR350 million rights offering maintaining shareholders' preferential subscription rights AS PART of its transformation plan
- Subscription ratio: 3 new shares for 1 existing share
- Subscription price: EUR0.66 per new share
- Subscription period: 14 January 2016 to 27 January 2016 inclusive
CGG announces the launch of ~ EUR350 million rights offering maintaining shareholders' preferential subscription rights AS PART of its transformation plan
- Subscription ratio: 3 new shares for 1 existing share
- Subscription price: EUR0.66 per new share
- Subscription period: 14 January 2016 to 27 January 2016 inclusive
The net proceeds of the issuance will be used to reinforce the shareholders' equity of CGG and improve its liquidity as it finances its Transformation Plan. The net proceeds will therefore be used principally to cover the shortfall in the consolidated net working capital of CGG of approximately U.S.$175 million for 2016 and, secondly, to finance its activities, which will permit CGG to reduce its reliance on drawings under the Group's revolving credit facilities.