PGS Raises Funds Through Private Placement

Norwegian seismic explorer Petroleum Geo-Services ASA announced Wednesday that it has raised approximately $225 million through a placement of 85,500,000 new shares.

The proceeds from the private placement will be used primarily to finance an inter-conditional exchange offer for the company's existing 7.375 percent Senior Notes due December 2018. Completion of the placement and issuance of the new shares is subject to the fulfilment of the conditions for the transaction, including approval by an extraordinary general meeting of the company, scheduled to be held Dec. 14.

Following the completion of the placement, and subject to market conditions, PGS has pledged to carry out a subsequent offering of up to 13,500,000 new shares for gross proceeds of approximately $35 million.