On January 14, ION Geophysical Corp. (IO) announced forbearance and amendment related to its revolving credit agreement. Moreover, the company also announced a forbearance agreement related to its notes due 2025. In addition to this, the preliminary fourth-quarter 2021 revenues were also released. Consequent to the announcement, IO stock surged up in the pre-market.
In the previous trading session, IO incurred a loss of 1.23% at the closing price of $0.85 per share. Following the announcement, the stock became bullish in the pre-market to gain 47.06%. Resultantly, IO stock was trading at $1.25 apiece in the pre-market.
The oil and gas industry geoscience technology, services, and solution provider, ION Geophysical Corp. has a market capitalization of $25.17M. Currently, the company has 29.62 million shares outstanding in the market.
IO’s Forbearance and Amendment
As per the announcement, the company has entered into a Forbearance and Fifth Amendment with PNC Bank, National Association. Moreover, IO has entered into the forbearance and amendment under its Revolving Credit and Security Agreement (dated August 22, 2014. According to this, PNC has accepted to waive the cross-default that would have occurred under the Credit Agreement through and including February 2022. This default was due to the inability of the company to pay the scheduled interest payment due on December 15, 2021. Further, this interest is due on its 8.00% Senior Secured Priority Notes due 2025 (prior to the expiration of the 30-day grace period).
Additionally, the company had also entered into forbearance agreements with holders of over 79% of its 2025 Notes until February 15, 2022. As per the agreement, the holders are to forbear from enforcing their rights and remedies arising from the company’s failure to pay the due interest.
Further, for strengthening its financial position and increasing stakeholder value, IO is working on discussions with PNC, and the holders of its 2025 Notes.
Q4 Preliminary Revenues
Along with that, the company also shared its preliminary revenues for the fourth quarter of 2021. Hence, IO expects the Q4 2021 revenues to be $40 million approx., marking a huge increase of 45% year over year.
NYSE Notice to IO Stock
On December 23, the company announced receiving a notice from the NYSE regarding its non-compliance with continued listing standards. As per the notice, IO is below the established criteria as its market capitalization has been lower than $50 million over consecutive 30 days. Added to this, the company’s last reported stockholder’ equity was also less than $50 million.