Mitcham Industries, Inc. (NASDAQ:MIND) has entered into a three-year $50 million syndicated revolving credit facility with HSBC Bank USA NA acting as administrative agent. This facility replaces the company's prior revolving credit agreement with First Victoria National Bank. Mitcham 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 million of the facility may be used to support letters of credit. The facility contains customary covenants, terms and conditions and is secured by essentially all of the company's domestic assets and by a portion of the stock of certain foreign subsidiaries.
Mitcham Industries, a geophysical equipment supplier, offers seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities.