Norwegian offshore survey company PGS has cancelled a refinancing program designed to raise a total of $657m.
The company announced the program at the end of May, planning to raise $525m in a 5-year first lien term loan and another 5.5-year $150m of second lien debt.
The proceeds was planned be used to repay the company’s existing loans maturing in 2020 and 2021.
PGS said the company has not been able to reach the targeted terms and has decided to withdraw the proposed transaction as a result of increased volatility in the capital markets and weaker investor sentiment toward oil field service post-launch.
“The marine seismic market is in recovery with increased activity levels and a significant improvement of pricing for contract services. PGS expects to generate positive cash flow and reduce net debt in 2019,” the company said.
PGS’s existing capital markets debts still have 18 and 21 months to maturity, respectively, and PGS expects to refinance the facilities within this year.