The Deal: Global Geophysical Lands Refinancing at 11th Hour

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."

Verghese and the company's vice president of corporate development Sean M. Gore couldn't be reached for comment.

The company was advised on the refinancing by financial advisers at Bank of America Merrill Lynch.

In August, ratings agency Standard & Poor's warned that Global Geophysical could be facing default if it was unable to refinance or reduce the amount outstanding on its revolver and improve its operating performance over the next six to 12 months.

In the report, S&P said the company's liquidity was very weak and its operating results have been lower than expected.

Global Geophysical also has $250 million in 10.5% senior unsecured notes due May 1, 2017. Bank of New York Mellon Trust is the indenture trustee on the notes. In addition, the company has $10.78 million outstanding on promissory notes.

The company reported $502.45 million in assets and $418.52 million in liabilities as of June 30. It had a $27.33 million net loss on $146.76 million in revenue for the six-month period ending June 30, according to a filing with the SEC on Aug. 13.

The company had roughly $10 million in cash on its balance sheet as of June 30.

Global Geophysical was sold to New York-based private equity firm Kelso & Co. in 2007, in a deal valued at $140 million. The company then went public in April 2010. Kelso still has a 32.55% stake in the company.

Kelso held a 32.55% stake in the company's stock as of Sept. 30, data from Bloomberg said.

--Written by Jamie Mason

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