October 26, 2009 (FinancialWire) — ION Geophysical Corp. (NYSE: IO) and BGP Inc., a Chinese geophysical firm, have signed a term sheet to create a joint venture that will provide land seismic products worldwide.

Houston-based ION said it will “significantly enhance” its financial position through total cash proceeds of $175 million from BGP. BGP will receive a 51 percent interest in the joint venture and a roughly 16.66 percent interest in ION.

Prior to the joint venture closing, ION will also receive up to $40 million of bridge financing arranged by BGP. At the transaction’s closing, ION will refinance and reduce its long-term debt, and receive an expanded replacement revolving line of credit.

After closing ION expects to have over $100 million in liquidity from cash and spare capacity on its revolving line of credit.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.