Mitcham Industries Enters Into New Credit Agreement
HUNTSVILLE, Texas, Aug. 5, 2013 /PRNewswire/ — Mitcham Industries, Inc. (NASDAQ:MIND) announced today that it has entered into a three-year, $50.0 million syndicated revolving credit facility with HSBC Bank USA, N.A., acting as Administrative Agent. This facility replaces the Company’s prior revolving credit agreement with First Victoria National Bank. The Company intends to use the proceeds from this facility for working capital and general corporate purposes.
Amounts available under the facility are subject to a borrowing base, calculated based upon the Company’s domestic lease pool of equipment and certain accounts receivable. The facility provides interest at a base rate, or for Eurodollar borrowings, in both cases plus an applicable margin. As of the closing of the facility, the base rate margin is 150 basis points and the Eurodollar margin is 250 basis points. Up to $10.0 million of the facility may be used to support letters of credit. The facility contains customary covenants, terms and conditions and is secured by essentially all of the Company’s domestic assets and by a portion of the stock of certain foreign subsidiaries.
Robert Capps, Executive Vice President and CFO, stated, “We are very pleased to enter into this new relationship with HSBC. We have developed into more of a global company over the past few years as we have expanded our operations internationally. Mitcham now has nine locations around the world, and more than 75% of our revenues are generated outside of the United States. We believe partnering with a global financial institution, such as HSBC, will provide us with the financial flexibility to support our acquisition and growth plans.”
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.
Contacts: Billy F. Mitcham, Jr., President & CEO Mitcham Industries, Inc. 936-291-2277 Jack Lascar /Karen Roan Dennard-Lascar Associates 713-529-6600
SOURCE Mitcham Industries, Inc.