Pulse Seismic Receives Renewal for Revolving Credit Facility
Pulse Seismic's syndicated revolving credit facility has been renewed until December 14, 2010. All of the members of the lending syndicate (Roynat, ATB and TD Bank) have approved the renewal. Management also elected to reduce the principal amount of the credit facility from $75 million to $65 million, in order to reduce fees and interest charges. This credit facility is intended to provide additional financing for growth of the Company's seismic data library through dataset acquisitions and participation surveys.
As of today, $28.0 million has been drawn on the credit facility, leaving $37.0 million available for future draws for dataset acquisitions and participation surveys.
Douglas Cutts, President and Chief Executive Officer, commented, "Pulse continues to manage its business in a prudent and cautious manner during this current recessionary period that has significantly impacted activity levels in the oil and natural gas services industry. The renewal of the credit facility is a confirmation by the lending syndicate of Pulse's financial strength and business model during a very difficult year. By maintaining a strong balance sheet, reducing long term debt and generating cash EBITDA during this period, it is clear that our business model is working efficiently. We will continue to look for opportunities to grow our seismic data library, and with the renewal of the credit facility maintain our financial flexibility."