Item 1.02. Termination of a Material Definitive Agreement.
On June 9, 2009, ION Geophysical Corporation (the "Company") repaid in full all outstanding indebtedness under the Company's Bridge Loan Agreement with Jefferies Finance LLC ("Jefferies").
The Company and certain of its domestic (U.S.) subsidiaries had entered into the Bridge Loan Agreement with Jefferies (as administrative agent, sole bookrunner and sole lead arranger), on December 30, 2008, in connection with a loan from Jefferies in the aggregate principal amount of $40.8 million (the "Bridge Loan"). The Bridge Loan indebtedness had been incurred to refinance $40.8 million of outstanding short-term indebtedness under the Company's Senior Increasing Rate Note dated September 18, 2008 that had been issued by it to an affiliate of Jefferies, as lender. This short-term indebtedness had been incurred in connection with the Company's acquisition of ARAM Systems Ltd. and related entities in September 2008.
Under the terms of the Bridge Loan Agreement, the Bridge Loan could be prepaid at any time by the Company without penalty or premium, upon three business days' written notice. The Bridge Loan was scheduled to mature on January 31, 2010.
To repay the Bridge Loan, the Company applied approximately $3.0 million of its cash on hand and approximately $38.0 million in net proceeds it received from the private placement of 18.5 million shares of its common stock it completed on June 4, 2009. The private placement and related transactions were described in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on June 2, 2009.

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