CALGARY, ALBERTA--(Marketwire - Feb. 15, 2013) - Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) ("Pulse" or "the Company") is pleased to announce it has executed a new $50.0 million three-year extendible revolving credit facility with a syndicate led by TD Bank and including ATB Financial.
Pulse has drawn an initial $26.1 million from the new facility to close its existing credit facility. The new facility replaces the $65 million revolving term credit facility, which the Company negotiated in 2008 and fully utilized in 2010 to fund a significant seismic data library asset acquisition that doubled the size of the Company's seismic data library. Both TD Bank and ATB Financial were members of the previous syndicate, which was led by Roynat Inc.
Highlights of the facility include:
- Four-tier margin structure based on Total Debt to Adjusted EBITDA covenant calculation, which translates to lower interest rates and opportunity for cash savings;
- 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, resulting in interim savings on the standby fee; and
- No regularly scheduled payments against the revolving facility's balance and no prepayment penalties, with voluntary payments permitted at any time.
"This facility enables a more efficient utilization of Pulse's cash resources and provides further financial flexibility to pursue our primary goal of owning Canada's most strategic seismic data library," commented Neal Coleman, President and CEO of Pulse. "Pulse continues to demonstrate a disciplined approach to managing its business and we are pleased that TD Bank, a Canadian tier-one lender, is facilitating our financial requirements. TD Bank, along with their partner ATB Financial, have partnered with Pulse for over four years. This relationship further confirms our business model as one of growth and sustainability. In addition, we would like to extend our thanks to Roynat for their past support."
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 27,100 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.