MIND gets vote of confidence from the bank
Posted: Tue Sep 04, 2012 8:19 am
I view this as a confirmation that things are going good for MIND. Banks don't extend this much credit without taking a hard look at the company. - dan
HUNTSVILLE, Texas, Sept. 4, 2012 /PRNewswire/ -- Mitcham Industries, Inc. (MIND) (the "Company") today announced that it has entered into an amended revolving credit agreement with First Victoria National Bank (the "Bank"). The amended revolving credit facility (the "Amended Facility") provides for total borrowings of up to $50 million on a revolving basis through August 31, 2015, an increase from the $35 million previously available. Borrowings under the Amended Facility bear interest, payable monthly, at the prime rate, subject to a floor of 3.25%.
Up to $10.0 million of the Amended Facility may be used to secure letters of credit. Under the Amended Facility, the Company may incur up to $10.0 million of additional debt without the prior consent of the Bank, including guaranties of subsidiary debt of up to $5.0 million. Other material terms of the Amended Facility are essentially unchanged from the previous $35.0 million facility.
Borrowings under the Amended Facility are secured by substantially all of the Company's domestic assets and are subject to a borrowing base computed based upon the Company's domestic lease pool and certain accounts receivable. At any time prior to maturity, the Company may convert any outstanding balances under the Amended Facility into a series of term notes with monthly amortization over 48 months. The Amended Facility contains certain financial covenants that require the Company to maintain a ratio of current assets to current liabilities, a maximum ratio of debt to shareholders' equity and a minimum level of quarterly earnings before interest, taxes, depreciation and amortization.
Rob Capps, Executive Vice President and CFO, commented, "Our outstanding balance under our credit facility was $9.9 million as of September 4, 2012. Despite this low level of outstanding borrowings, we believe now is the right time to expand and extend this credit facility in order to preserve our financial flexibility for the foreseeable future. We believe that the expansion of our credit facility will provide us the flexibility to take advantage of potential opportunities that may arise. The amended credit facility provides us with additional borrowing capacity, has no required repayments until August 2015 and allows us to convert outstanding amounts into 48-month term loans at any time."
Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease or sale, new and "experienced" seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities. Headquartered in Texas, with sales and services offices in Calgary, Canada; Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia; Budapest, Hungary; Lima, Peru; Bogota, Colombia and the United Kingdom, Mitcham conducts operations on a global scale and is the largest independent exploration equipment lessor in the industry. Through its Seamap business, the Company designs, manufactures and sells specialized seismic marine equipment.
HUNTSVILLE, Texas, Sept. 4, 2012 /PRNewswire/ -- Mitcham Industries, Inc. (MIND) (the "Company") today announced that it has entered into an amended revolving credit agreement with First Victoria National Bank (the "Bank"). The amended revolving credit facility (the "Amended Facility") provides for total borrowings of up to $50 million on a revolving basis through August 31, 2015, an increase from the $35 million previously available. Borrowings under the Amended Facility bear interest, payable monthly, at the prime rate, subject to a floor of 3.25%.
Up to $10.0 million of the Amended Facility may be used to secure letters of credit. Under the Amended Facility, the Company may incur up to $10.0 million of additional debt without the prior consent of the Bank, including guaranties of subsidiary debt of up to $5.0 million. Other material terms of the Amended Facility are essentially unchanged from the previous $35.0 million facility.
Borrowings under the Amended Facility are secured by substantially all of the Company's domestic assets and are subject to a borrowing base computed based upon the Company's domestic lease pool and certain accounts receivable. At any time prior to maturity, the Company may convert any outstanding balances under the Amended Facility into a series of term notes with monthly amortization over 48 months. The Amended Facility contains certain financial covenants that require the Company to maintain a ratio of current assets to current liabilities, a maximum ratio of debt to shareholders' equity and a minimum level of quarterly earnings before interest, taxes, depreciation and amortization.
Rob Capps, Executive Vice President and CFO, commented, "Our outstanding balance under our credit facility was $9.9 million as of September 4, 2012. Despite this low level of outstanding borrowings, we believe now is the right time to expand and extend this credit facility in order to preserve our financial flexibility for the foreseeable future. We believe that the expansion of our credit facility will provide us the flexibility to take advantage of potential opportunities that may arise. The amended credit facility provides us with additional borrowing capacity, has no required repayments until August 2015 and allows us to convert outstanding amounts into 48-month term loans at any time."
Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease or sale, new and "experienced" seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities. Headquartered in Texas, with sales and services offices in Calgary, Canada; Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia; Budapest, Hungary; Lima, Peru; Bogota, Colombia and the United Kingdom, Mitcham conducts operations on a global scale and is the largest independent exploration equipment lessor in the industry. Through its Seamap business, the Company designs, manufactures and sells specialized seismic marine equipment.