Dawson Geophysical Co (NASDAQ:DWSN) Files An 8-K

Dawson Geophysical Co (NASDAQ:DWSN) entered into an amendment (the “Amendment”) to the Amended and Restated Loan and Security Agreement (as amended, the “Amended Loan Agreement”) for the purpose of amending the Company’s line of credit with its lender, Sovereign Bank, a Texas state bank.  The Amended Loan Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in an amount up to the lesser of (i) $20,000,000 or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable (less the outstanding principal balance of term loans and letters of credit under the Amended Loan Agreement) and (b) the lesser of (i) 50% of the value of certain of the Company’s core equipment or (ii) $12,500,000. As collateral for indebtedness under the Revolving Credit Facility, the Company has granted Sovereign Bank a security interest covering all of the Company’s accounts receivable.  The Company also re-pledged to and re-granted a security interest in certain of the Company’s core equipment in connection with the Amendment. As of this date, the Company has not borrowed any amounts under the Revolving Credit Facility.  The Revolving Credit Facility matures on June 30, 2017.

Story continues below

 

The Amended Loan Agreement continues to also provide for a term loan feature and also allows for the issuance of letters of credit and other promissory notes, and certain indebtedness of the Company pursuant to such features is secured by a security interest in certain of the Company’s core equipment.

An ad to help with our costs