Pulse Seismic has extended its revolving credit facility for an additional year. The new maturity date of the facility is February 13, 2019. At its own discretion, the company elected to reduce the facility’s available borrowing amount to $30 million from $50 million. Up to $5 million of the revolving facility continues to be available as an operating line of credit.

The credit facility was provided by a syndicate led by TD Bank and includes ATB Financial and will continue to include an accordion feature which allows Pulse to increase the facility’s size up to $70 million, subject to the consent of the lenders. The accordion incurs no renewal or standby fees. The voluntary reduction in borrowing capacity reflects Pulse’s strong balance sheet as the facility is entirely undrawn.

The “right-sizing” of the facility is in line with ongoing cost-reduction initiatives as it will save standby and commitment fees. The company believes the revised amounts provide sufficient credit capacity to execute its business strategy.

“The implementation of cash conservation measures like this facility reduction is prudent during this unprecedented period of economic uncertainty, and we value the strong support of our lenders to this change,” commented Neal Coleman, Pulse’s president and CEO. “After a strong fourth quarter, we are well-positioned as a debt-free organization not only to continue navigating through the downturn but to pursue seismic data acquisition opportunities.”

Pulse Seismic provides acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector.