Global Geophysical Services Inc. (NYSE:GGS) 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.
Bank of America Merrill Lynch acted as financial advisor to the Houston, TX-based company in connection with the financing.
Global Geophysical Services provides an integrated suite of geoscience and engineering solutions to the global oil and gas industry including high-resolution, Reservoir Grade(SM)seismic data acquisition, AutoSeis(R) autonomous nodal recording technology, seismic data processing, microseismic monitoring, multi-client data products and interpretation services focused on unconventional consulting.