ION Geophysical amends credit facility to trim revolver, lower pricing

By Marisa Wong

Morgantown, W.Va., Aug. 6 – ION Geophysical Corp. amended its senior secured credit facility dated Aug. 22, 2014 with PNC Bank, NA as agent to reduce the maximum amount of the revolving line of credit under the facility to $40 million from $80 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the interest rates and includes an unused line fee of 0.75% per annum with no adjustment based on usage.

Interest is now Libor plus an applicable margin of 350 basis points, increased from Libor plus 250 bps.

The amendment, effective as of Aug. 3, also eliminates the requirement to maintain a maximum senior secured leverage ratio and eliminates qualified cash from the borrowing base calculation under the credit facility.

The company will continue to be required to maintain a minimum fixed-charge coverage ratio of 1.1 times as of the end of each fiscal quarter during the existence of a covenant testing trigger event.

In addition, the amendment adds a percentage of the net orderly liquidation value of the company’s multi-client data library to the borrowing base calculation (not to exceed $15 million).

The amendment includes removal of the accordion features under the credit facility for both the revolving line of credit and the last-out term loan and reduces the unbilled receivables sublimit to $25 million from $45 million.

As of the amendment effective date, there was no outstanding debt.

ION Geophysical is a Houston-based provider of geophysical technology, services and solutions for the oil and gas industry.

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