CALGARY, ALBERTA--(Marketwired - Dec 20, 2013) - Pulse Seismic Inc. (PSD.TO)(PLSDF) ("Pulse" or "the Company") is pleased to announce it has extended its $50.0 million revolving credit facility for an additional year. The credit facility is with a syndicate led by TD Bank and includes ATB Financial. The balance owing on the facility is currently $21.1 million, leaving $28.9 million available for future draws.
Originally entered into in February 2013, the credit facility was initially structured as a three-year extendible facility with a maturity date of February 13, 2016. The lenders have approved the extension of the maturity date to February 13, 2017. In conjunction with the renewal, the four-tier margin structure has been improved. The margin structure is based on the Total Debt to Adjusted EBITDA covenant calculation. The applicable margins for interest rates and stand-by fees have been reduced for the top three tiers and will result in future cash savings.
Other highlights of the facility continue to be:
- An accordion feature allowing Pulse to increase the facility's size by up to an additional $20.0 million, subject to the consent of the lenders; and
- No regularly scheduled payments against the revolving facility's principal balance and no prepayment penalties, with voluntary payments permitted at any time.
"This extension, and the related interest rate reduction, confirms the continued support of Pulse's business model by the lender group," commented Neal Coleman, Pulse's President and CEO. "It keeps us well-positioned to pursue future growth opportunities that meet the Company's strict criteria for value."
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 28,300 square kilometres of 3D seismic and 340,000 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.