OSLO, Norway, July 2, 2007 (PRIME NEWSWIRE) -- Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE:PGS) (NYSE:PGS) announced today that it, on June 29, 2007, completed the process to establish a new Senior Secured Credit Facility. The total facility amount of $950 million consists of an eight-year $600 million Term Loan B and a five-year $350 million Revolving Credit facility. The Term Loan B, which has no financial maintenance covenants, has a floating interest rate of LIBOR + 175 basis points. The Company expects to enter into interest rate derivatives agreements for a portion of the loan to change all or parts of its interest rate exposure from floating to fixed interest rate.
The proceeds together with available cash have been used to repay and cancel the Company's previous Senior Secured Credit Facility, which consisted of a $244 million Term Loan B and a $150 million Revolving Credit Facility and to pay the purchase consideration for the acquisition of MTEM Limited. It will further be used to fund the payment of approximately $300 million of special dividend approved by the Annual General Meeting held June 15, 2007 and for general corporate purposes.
Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.
For more information on Petroleum Geo-Services visit www.pgs.com.
The information included herein contains certain 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 are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission including the Company's most recent Annual Report on Form 20-F for the year ended December 31, 2006. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.