Global Geophysical Services, Inc.
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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