Ion Geophysical to pay off a bridge loan

Ion Geophysical Corp. said Tuesday that it will use about $38 million in net proceeds from a private stock offering and $3 million in available cash to pay off a bridge loan.

The company, which generates seismic data for oil and gas companies, also amended a senior secured credit agreement in order to ease some financial requirements and increase its financial flexibility.

Ion's private stock offering included 18.5 million shares of common stock priced at $2.20 per share.

The company said it is paying off the bridge loan before it matures so that it can avoid some duration payments tied to the loan and lower its cash interest expenses.

Ion's total debt will be about $248.6 million after the loan is repaid.

Shares of Ion Geophysical added 9 cents, or 3 percent, to $3.13 in afternoon trading.