ION enters into support agreement with senior note holders

ION Geophysical Corp. (NYSE: IO) has entered into a support agreement with the holders of more than two-thirds of the aggregate outstanding principal amount of the company's 8.125% senior secured second priority notes (the existing notes) due 2018 relating to a proposed transaction, which will, among other things, extend the maturity of the company's outstanding existing notes until Dec. 15, 2021, and utilize up to $15 million to reduce the aggregate amount of the existing notes at a substantial discount to par. 

The company's entry into the support agreement is its first step in launching a potential offer to exchange. There can be no assurance that the company will reach a final agreement on the terms of an offer to exchange with its supporting holders.

ION President and CEO Brian Hanson commented, "Upon the consummation of the exchange offer and, if the cash tender option is fully subscribed by our noteholders, we expect to have successfully extended the maturity of a substantial portion of our outstanding debt for over three years and will have de-levered our balance sheet by $25–$30 million." 

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