SAExploration amends term loan, seeks to improve balance sheet, capital structure

By Devika Patel

Knoxville, Tenn., Nov. 9 – SAExploration Holdings, Inc. plans to become “more competitive” through improving its balance sheet and taking steps to solve its capital structure.

It added that it demonstrated its intention to do this in September, when it amended its term loan agreement to extend the maturity out to 2020 and replace the revolving credit facility.

“We remain focused on positioning SAE to adapt and become more competitive during this cycle, as evidenced with our recent transaction to extend the maturity of our $30 million senior term loan to 2020 and replace our revolving credit facility,” executive chairman and chief executive officer Jeff Hastings said on the company’s third quarter and first nine months ended Sept. 30 earnings conference call on Thursday.

“We’re also committed to creating and implementing a more sustainable solution for our capital structure, specifically one that right sizes our balance sheet while providing the opportunity to generate long-term upside for our equity in a broader market recovery,” Hastings said.

Total debt at the end of the quarter was $121.9 million face value.

The company’s total cash balance, including restricted cash, was $14.1 million as of Sept. 30.

Adjusted EBITDA was negative $1.2 million, compared to negative $100,000 in the third quarter of 2016.

Year-to-date adjusted EBITDA decreased 53.5% to $17.8 million from $38.3 million in the first nine months of 2016.

The company entered into a second amendment to its June 2016 term loan agreement on Sept. 8 to extend the term loans held by its consenting lenders.

Specifically, the term loans were extended to Jan. 2, 2020, subject to an earlier maturity date of Jan. 2, 2019 if certain debt remains outstanding at that date.

The amendment also increased the interest rate for the extended loans to 10.5% a year through Feb. 8, 2018, then stepping up to 11.5% on Feb. 8, 2018 and to 12.5% on Aug. 8, 2018.

Additionally, the amendment provides for a mandatory prepayment with proceeds from any Alaska tax credit and provides for a call premium with respect to certain prepayments.

Delaware Trust Co. is the administrative agent.

SAExploration is a Houston-based oilfield services company.

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