Akin Gump Advises Ad Hoc Group of Lenders on $872 Million PGS Financial Restructuring

(London) – Akin Gump has advised an ad hoc group of lenders to PGS ASA, the Oslo-listed holding company for a global seismic imaging group, in relation to the financial restructuring of $872 million of the company’s debt. The transaction was implemented pursuant to an English law scheme of arrangement, sanctioned by the High Court of England on February 2, 2021.

The transaction has resulted in PGS extending its debt maturities and amortization profile by approximately two years. The restructured facilities consisted of a $135 million RCF, $215 million RCF and $522 million term loan B (TLB), and, as part of the transaction, each RCF facility has been converted into an enlarged TLB facility, maturing in 2024. A new convertible bond representing 10 percent of the company’s share capital was also issued by PGS to lenders that elected to receive it in exchange for a proportion of their existing loans.

In connection with the restructuring of its RCF and TLB facilities, PGS has also agreed to a series of amendments to its approximately $300 million export credit facilities.

The Akin Gump team advising the ad hoc group was led by London financial restructuring partner James Terry, finance partner Amy Kennedy and corporate partner Vance Chapman, supported by senior corporate counsel Tony Barnes, New York finance counsel Tiffanye Threadcraft, financial restructuring associate Ross Macgregor and trainee solicitor Kelly Joseph.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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