HSBC Agents New $50MM Revolver for Mitcham Industries
Mitcham Industries announced it has entered into a three-year, $50 million syndicated revolving credit facility with HSBC Bank USA, 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.
Robert Capps, EVP 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.”
Texas-based Mitcham Industries is a geophysical equipment supplier that offers, for lease or sale, new and “experienced” seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities.