Mitcham Industries Amends Revolver with First Victoria
Mitcham Industries announced it has entered into an amended revolving credit agreement with First Victoria National Bank. The amended revolving credit facility provides for total borrowings of up to $50 million on a revolving basis through August 31, 2015, an increase from the $35 million previously available.
Borrowings under the amended facility bear interest, payable monthly, at the prime rate, subject to a floor of 3.25%.
Up to $10 million of the amended facility may be used to secure letters of credit. Under the amended facility, the company may incur up to $10 million of additional debt without the prior consent of the Bank, including guaranties of subsidiary debt of up to $5 million.
Borrowings under the amended facility are secured by substantially all of the company’s domestic assets and are subject to a borrowing base computed based upon the company’s domestic lease pool and certain accounts receivable.
Huntsville, TX-based Mitcham Industries, a geophysical equipment supplier, offers for lease or sale, new and “experienced” seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities.