SAExploration Holdings, Inc. (NASDAQ:SAEX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On November 18, 2019, SAExploration, Inc. (SAExploration), a subsidiary of SAExploration Holdings, Inc. (the Company), financed the purchase of a 30,000 single channel GCL system (the Equipment) from GTC, Inc. (GTC) to a secured promissory note (the Promissory Note) in favor of GTC in the principal amount of $9,973,730.
The Promissory Note bears interest at a fixed rate equal to 7% per annum and matures on January 1, 2023 (the Maturity Date). Principal and interest will be due and payable in equal monthly payments of $307,959.83, beginning on February 1, 2020, and each month thereafter until the Maturity Date.
Concurrently with the delivery of the Promissory Note, SAExploration and GTC entered into a Purchase Money Security Agreement (the Security Agreement), which granted GTC a security interest in the Equipment to secure SAExplorations obligations under the Promissory Note.
The foregoing descriptions of the Promissory Note and the Security Agreement are summaries only and are qualified in their entirety by reference to the complete text of (i) the Promissory Note, attached as Exhibit 10.1 hereto, and (ii) the Security Agreement, attached as Exhibit 10.2 hereto, each incorporated herein by reference.
Amendments to Debt Instruments
In connection with the entry into the Promissory Note and the Security Agreement and the acquisition of the Equipment, the Company entered into the following amendments to its debt instruments, in order to, among other things, make certain amendments required to permit the transactions contemplated under the Promissory Note and the Security Agreement:
The foregoing descriptions of the ABL Amendment, the Term Loan Amendment and the Supplemental Indenture are summaries only and are qualified in their entirety by reference to the complete text of (i) the ABL Amendment, attached as Exhibit 10.3 hereto, (ii) the Term Loan Amendment, attached as Exhibit 10.4 hereto, and (iii) the Supplemental Indenture, attached as Exhibit 10.5 hereto, each incorporated herein by reference.