NEW YORK (The Deal) -- Global Geophysical Services (GGS) . secured a $105 million loan that will refinance the company's revolving credit facility before it was set to be reduced by $12.5 million on Monday, Sept. 30.
The Houston-based seismic data provider to the oil and gas industry said it received a $105 million loan from TPG Specialty Lending Inc. and funds managed by Tennenbaum Capital Partners LLC.
Tennenbaum is a Los Angeles-based alternative investment management firm focused on middle-market companies, while TPG is the direct originations investment platform of the Fort Worth, Texas-based global investment firm TPG Capital LP.
The loan consists of an $82.8 million term loan A and a $22.2 million term loan B. The loans are priced at Libor plus 975 basis points with a 1% floor on Libor and mature on Sept. 30, 2016.The company will use the term loan A to refinance the $79.9 million outstanding on its $80 million revolving credit facility for which Bank of America acted as the administrative agent, and to pay fees and expenses. The new loan also provides Global Geophysical with access to additional capital for potential future strategic transactions, the company said in its statement Monday. The revolver was set to mature on April 30, 2014, and was priced at Libor plus 375 basis points, according to data provided by Bloomberg. Other lenders on the revolver included Barclays, Citibank and Credit Suisse (Cayman Islands Branch). If the company had failed to refinance the debt by Sept. 30, the revolver was set to step down to $67.5 million, leaving $12.5 million to be made up by the company. The reduction was originally set to take place in April, but the company won a reprieve until September to work on refinancing. "We are excited to be working with TPG and Tennenbaum in this important transaction," said Global Geophysical's CFO Mathew Verghese in the statement Monday. "This financing, which extends the maturity of our credit facility, has been an important objective for Global. We look forward to the support of our new financial partners as we execute on our strategic priorities."
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