UPDATE: Global Geophysical Executes Financing Deal for $105M
Global Geophysical Services, Inc. (NYSE: GGS) (the "Company") announced today that it has entered into a financing agreement with TPG Specialty Lending, Inc. ("TPG") and funds managed by Tennenbaum Capital Partners, LLC ("TCP") for the provision of a $105 million loan facility. The loan facility will refinance in full its existing revolving credit facility, pay certain related fees and expenses, and provide access to additional capital for potential future strategic transactions.
The $105 million financing agreement provides for an $82.8 million Term A Loan and a $22.2 million Term B Loan ("Loans"). The Term A Loan will be fully drawn at closing to refinance the existing credit facility and to pay fees and expenses. The Loans bear interest at a rate of LIBOR plus 9.75% (subject to a LIBOR floor of 1%). The maturity date of the financing agreement is September 30, 2016.
The Term B Loan commitment is intended to support strategic transactions that the Company may undertake. As of the closing, no amounts were drawn on the Term B Loan.
Mathew Verghese, Global's Chief Financial Officer, stated, "We are excited to be working with TPG and Tennenbaum in this important transaction. This financing, which extends the maturity of our credit facility, has been an important objective for Global. We look forward to the support of our new financial partners as we execute on our strategic priorities."
Bank of America Merrill Lynch acted as financial advisor to the Company in connection with the financing.
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