Under the terms of the bank facility, PGS must make a mandatory pre-payment of $175 million from the proceeds of the sale of its Atlantis Technology subsidiary. The remaining amounts outstanding will be due at maturity. The bank facility will mature on June 16, 2003 or as late as August 31, 2003 if the proposed merger with Veritas is completed. The credit facility carries an initial interest rate of LIBOR plus 0.65%, which escalates to LIBOR plus 1.0% on June 1, 2002, LIBOR plus 1.5% on August 1, 2002 and LIBOR plus 4.5% on October 1, 2002. Additionally, notwithstanding the previous sentence, if the Company's credit rating is lowered either by S&P or Moody's the interest rate will immediately increase to LIBOR plus 4.5%.
Petroleum Geo-Services is a technologically focused oilfield service company principally involved in two businesses: Geophysical Operations and Production Operations. PGS acquires, processes and markets 3D, time-lapse and multi-component seismic data. These data are used by oil and gas companies in the exploration for new reserves, the development of existing reservoirs, and the management of producing oil and gas fields. PGS' advanced geophysical technologies allows oil and gas companies to better characterize and monitor their reservoirs in order to enhance production and ultimate recovery of hydrocarbons. In its Production Operations business, PGS owns four floating production, storage and offloading systems ("FPSOs") and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce from offshore fields more quickly and cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.
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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 certain assumptions and analyses made by the Company in light of its experience and its perception of historical and future trends, on general economic and business conditions and on numerous other factors, including expected future developments, many of which are beyond the control of the Company. Such forward-looking statements are also subject to certain risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. As a result of these factors, the Company's actual results may differ materially from those indicated in or implied by such forward-looking statements.