June 2, 2009 (FinancialWire) — Ion Geophysical Corp. (NYSE: IO) said it has entered into definitive agreements for the private placement of 18.5 million shares of its common stock at $2.20 per share, for gross proceeds of around $40.7 million.

The company said it expects to see net proceeds of around $38.0 million. Ion said it will use the net proceeds, along with around $3 million of cash on hand, to repay in full a bridge loan made under a December 30, 2008 agreement with Jefferies Finance.

Ion said that repaying the bridge loan prior to its maturity would eliminate the need to pay certain duration payments associated with the loan and will reduce Ion’s cash interest expenses.

After the repayment of the bridge loan, Ion will have outstanding indebtedness of around $248.6 million, consisting of around $115.6 million in five-year term borrowings and $98.0 million in revolving credit facility borrowings under the company’s senior secured credit facility. It will also hold $35.0 million of subordinated indebtedness outstanding under a five-year term promissory note issued to one of Aram’s selling shareholders as part of the purchase of Aram in September 2008, and various capital lease obligations.

Houston-based Ion Geophysical is a provider of geophysical technology, services, and solutions for the global oil & gas industry.

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