Global Geophysical seeks approval of $151.8 million in DIP financing

By Caroline Salls

Pittsburgh, April 14 - Global Geophysical Services, Inc. requested court approval of a total $151.8 million debtor-in-possession financing agreement that the company said ends a priming fight between its noteholders and pre-bankruptcy lenders, according to a supplemental financing motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

Global Geophysical said an informal noteholders group delivered on an agreement to "take out" the pre-bankruptcy lenders, and a settlement was reached to allow the lenders' claim at a compromised amount.

The company said the financing gives it $60 million of new money in two rounds of funding, including a $25 million round, which has already been drawn under the interim DIP loan order, and $35 million, which will be made available upon entry of the final order.

The financing also now includes a $91.88 million tranche, which will be used for the full and consensual refinancing of the claims of the pre-bankruptcy lenders.

In exchange for the refinancing and payment, the pre-bankruptcy lenders agreed to reduce their senior secured claim by more than $9.3 million, which Global Geophysical said includes a significant compromise on the amount of interest, fees and the yield maintenance premium.

The financing will mature on June 25, 2015, although the company said it plans to repay the DIP loans and exit Chapter 11 well in advance of that date.

The refinancing tranche will bear interest at 200 basis points higher than the new money tranche. As previously reported, the interest rate on the new money tranche is Libor plus 850 basis points with a 1.5% Libor floor.

Global Geophysical, a Missouri City, Texas-based provider of seismic data services to the oil and gas industry, filed bankruptcy on March 25. The Chapter 11 case number is 14-20130.

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