SAExploration Holdings, Inc. (NASDAQ: SAEX) has said that about 66.7% of holders of its 10% senior secured notes maturing in 2019 have agreed to back its balance sheet restructuring efforts. The support from the note holders and other lenders includes a fresh loan facility for the company. With that, SAEX expects to improve its liquidity position and gain more financial flexibility.
$30 million in new loan facility
SAExploration Holdings, Inc. (NASDAQ: SAEX) has negotiated a fresh loan facility that paves the way for it to access up to $30 million. The new line of credit is backed by the holders of its senior notes that mature in 2019 as well as other lenders. Those note holders who participated in the company’s recent exchange offer program can also participant as lender in the new credit facility.
The cost of the new borrowing
SAEX said that the new credit facility negotiated by existing notes holders and other lenders will bear interest at the rate of 10% annually. The loan facility will be due on January 2, 2018, but it maturity could come sooner.
Gradual access to the funds
SAExploration Holdings, Inc. (NASDAQ: SAEX) will not access the $30 million new credit facility all at once. Instead, access to the credit funds will be gradual. In that case, the company will initially have access to $5.6 million of which $0.6 million will go into meeting the fees associated with the new loan.
At the second draw, SAEX can access up to a maximum of $9.4 million. The balance of $15 million will be made available to the company in three separate draws after it receives the Alaska tax credit certificate. But the tax credit should have a face amount that is at least $25 million.
The new $30 million loan is guaranteed by SAEX’s domestic subsidiaries.
Financial performance SAExploration Holdings, Inc. (NASDAQ: SAEX)
SAExploration Holdings, Inc. (NASDAQ: SAEX) generated revenue of $90.2 million in 1Q2016, which was up 13.1%. The increase in revenue was supported by an increase in activity in South America and North America. SAEX posted EPS of $0.82, up from $0.08 a year earlier.