[8-K] Geospace Technologies Corporation Reports Material Event
Geospace Technologies Corporation entered into a First Amended and Restated Credit Agreement with Woodforest National Bank providing a three-year revolving credit facility with maximum availability of $25.0 million. The facility continues and extends the company’s prior revolving loan and accrues interest at the company’s option of 30‑day Term SOFR + 2.75% or an Alternate Base Rate + 2.75%, with monthly interest payments required.
The agreement is secured by substantially all assets of the borrowers (with certain excluded property) and imposes financial covenants including a minimum consolidated tangible net worth of $85.0 million, minimum liquidity of $10.0 million, a minimum asset coverage ratio of 2.00 to 1.00, and a springing minimum interest coverage ratio of 1.50 to 1.00 tested quarterly under specified conditions.
Geospace Technologies Corporation ha stipulato un First Amended and Restated Credit Agreement con Woodforest National Bank che prevede una linea di credito revolving triennale con una disponibilità massima di $25,0 milioni. La linea rinnova ed estende il precedente prestito revolving della società e prevede, a scelta della società, un tasso di interesse pari a 30‑day Term SOFR + 2,75% oppure un Alternate Base Rate + 2,75%, con pagamento degli interessi su base mensile.
L’accordo è garantito da sostanzialmente tutti gli attivi dei prenditori (con alcune proprietà escluse) e impone covenant finanziari che includono un patrimonio netto tangibile consolidato minimo di $85,0 milioni, una liquidità minima di $10,0 milioni, un rapporto minimo di copertura degli attivi di 2,00 a 1,00 e un rapporto minimo di copertura degli interessi “a scatto” di 1,50 a 1,00, testato trimestralmente alle condizioni specificate.
Geospace Technologies Corporation celebró un First Amended and Restated Credit Agreement con Woodforest National Bank que establece una línea de crédito revolvente a tres años con una disponibilidad máxima de $25.0 millones. La facilidad continúa y amplía el préstamo revolvente previo de la compañía y devenga intereses, a elección de la compañía, a 30‑day Term SOFR + 2.75% o a un Alternate Base Rate + 2.75%, con pagos de intereses mensuales.
El acuerdo está garantizado por sustancialmente todos los activos de los prestatarios (con ciertas propiedades excluidas) e impone convenios financieros que incluyen un patrimonio tangible consolidado mínimo de $85.0 millones, una liquidez mínima de $10.0 millones, una ratio mínima de cobertura de activos de 2.00 a 1.00 y una ratio mínima de cobertura de intereses condicionada de 1.50 a 1.00, evaluada trimestralmente bajo las condiciones especificadas.
Geospace Technologies Corporation는 Woodforest National Bank와 제1차 수정 및 재정비된 신용계약(First Amended and Restated Credit Agreement)을 체결하여 최대 가용액 $25.0백만의 3년 만기 회전 신용시설을 마련했습니다. 이 시설은 회사의 기존 회전대출을 계속·연장하며, 회사 선택으로 30‑day Term SOFR + 2.75% 또는 Alternate Base Rate + 2.75%의 이자율이 적용되며, 이자는 매월 지급되어야 합니다.
본 계약은 일부 제외 자산을 제외한 차용인 대부분의 자산을 담보로 하며, 재무 약정으로서 통합 유형 순자산 최소액 $85.0백만, 최소 유동성 $10.0백만, 최소 자산 커버리지 비율 2.00 대 1.00 및 특정 조건에서 분기별로 시험하는 발동형 최소 이자보상비율 1.50 대 1.00을 규정합니다.
Geospace Technologies Corporation a conclu un First Amended and Restated Credit Agreement avec Woodforest National Bank, prévoyant une facilité de crédit renouvelable d’une durée de trois ans avec une disponibilité maximale de 25,0 M$. La facilité poursuit et prolonge le prêt renouvelable antérieur de la société et porte intérêt, au choix de la société, à 30‑day Term SOFR + 2,75% ou à un Alternate Base Rate + 2,75%, les intérêts devant être payés mensuellement.
L’accord est garanti par substantiellement tous les actifs des emprunteurs (avec certains biens exclus) et impose des engagements financiers comprenant un actif net tangible consolidé minimum de 85,0 M$, une liquidité minimale de 10,0 M$, un ratio minimum de couverture des actifs de 2,00 pour 1,00 et un ratio minimum de couverture des intérêts conditionnel (springing) de 1,50 pour 1,00, testé trimestriellement selon les conditions spécifiées.
Geospace Technologies Corporation hat einen First Amended and Restated Credit Agreement mit der Woodforest National Bank abgeschlossen, der eine dreijährige revolvierende Kreditfazilität mit einer maximalen Verfügbarkeit von $25,0 Millionen vorsieht. Die Fazilität ersetzt und verlängert das vorherige revolvierende Darlehen des Unternehmens und verzinst sich wahlweise mit 30‑day Term SOFR + 2,75% oder mit einem Alternate Base Rate + 2,75%, wobei Zinszahlungen monatlich zu leisten sind.
Die Vereinbarung ist durch im Wesentlichen alle Vermögenswerte der Kreditnehmer besichert (mit bestimmten ausgeschlossenen Vermögenswerten) und enthält finanzielle Covenants, darunter ein Mindestkonsolidiertes materielles Eigenkapital von $85,0 Millionen, eine Mindestliquidität von $10,0 Millionen, ein Mindest-Asset-Coverage-Verhältnis von 2,00 zu 1,00 sowie ein auslösendes Mindestzinsdeckungsverhältnis von 1,50 zu 1,00, das unter den festgelegten Bedingungen quartalsweise geprüft wird.
- $25.0 million revolving credit facility provides immediate liquidity and continuity of financing
- Three-year term extends and replaces prior agreement, preserving banking relationship with Woodforest National Bank
- Borrower option to choose between 30‑day Term SOFR + 2.75% or Alternate Base Rate + 2.75% offers interest-rate flexibility
- Facility is documented as a revolving line, allowing repeated borrowings up to the maximum availability
- Facility is secured by substantially all assets of the borrowers, restricting asset flexibility
- Several material covenants including minimum tangible net worth $85M, minimum liquidity $10M, and asset coverage 2.00:1
- A springing interest coverage ratio of 1.50:1 can be triggered when borrowings exist or LC exposure exceeds $1M, creating potential covenant volatility
Insights
TL;DR: Secures near-term liquidity with a $25M revolver at market-linked rates, supporting operations while preserving borrowing flexibility.
The three-year $25 million revolver provides tangible liquidity support and continuity of the company’s banking relationship with Woodforest National Bank. The pricing tied to 30-day Term SOFR or an alternate base rate plus a 2.75% margin is consistent with typical mid‑market credit facilities and gives the company rate-choice flexibility. Monthly interest payments and the secured nature of the facility indicate lender protection, while the covenants—minimum tangible net worth $85M and minimum liquidity $10M—are covenant-level metrics management must monitor closely to avoid default or restricted borrowing capacity.
TL;DR: Facility improves liquidity but includes multiple restrictive covenants and broad collateral that raise downside risk if financial metrics weaken.
The agreement’s security interest in substantially all assets increases recovery prospects for the lender and constrains the company’s ability to use certain assets freely. The springing interest coverage covenant, tested when borrowings exist or LC exposure exceeds $1 million, introduces potential volatility in covenant compliance tied to operating results or letter-of-credit usage. Management must actively manage liquidity and coverage ratios; breaches could trigger acceleration risk or tightened terms.
Geospace Technologies Corporation ha stipulato un First Amended and Restated Credit Agreement con Woodforest National Bank che prevede una linea di credito revolving triennale con una disponibilità massima di $25,0 milioni. La linea rinnova ed estende il precedente prestito revolving della società e prevede, a scelta della società, un tasso di interesse pari a 30‑day Term SOFR + 2,75% oppure un Alternate Base Rate + 2,75%, con pagamento degli interessi su base mensile.
L’accordo è garantito da sostanzialmente tutti gli attivi dei prenditori (con alcune proprietà escluse) e impone covenant finanziari che includono un patrimonio netto tangibile consolidato minimo di $85,0 milioni, una liquidità minima di $10,0 milioni, un rapporto minimo di copertura degli attivi di 2,00 a 1,00 e un rapporto minimo di copertura degli interessi “a scatto” di 1,50 a 1,00, testato trimestralmente alle condizioni specificate.
Geospace Technologies Corporation celebró un First Amended and Restated Credit Agreement con Woodforest National Bank que establece una línea de crédito revolvente a tres años con una disponibilidad máxima de $25.0 millones. La facilidad continúa y amplía el préstamo revolvente previo de la compañía y devenga intereses, a elección de la compañía, a 30‑day Term SOFR + 2.75% o a un Alternate Base Rate + 2.75%, con pagos de intereses mensuales.
El acuerdo está garantizado por sustancialmente todos los activos de los prestatarios (con ciertas propiedades excluidas) e impone convenios financieros que incluyen un patrimonio tangible consolidado mínimo de $85.0 millones, una liquidez mínima de $10.0 millones, una ratio mínima de cobertura de activos de 2.00 a 1.00 y una ratio mínima de cobertura de intereses condicionada de 1.50 a 1.00, evaluada trimestralmente bajo las condiciones especificadas.
Geospace Technologies Corporation는 Woodforest National Bank와 제1차 수정 및 재정비된 신용계약(First Amended and Restated Credit Agreement)을 체결하여 최대 가용액 $25.0백만의 3년 만기 회전 신용시설을 마련했습니다. 이 시설은 회사의 기존 회전대출을 계속·연장하며, 회사 선택으로 30‑day Term SOFR + 2.75% 또는 Alternate Base Rate + 2.75%의 이자율이 적용되며, 이자는 매월 지급되어야 합니다.
본 계약은 일부 제외 자산을 제외한 차용인 대부분의 자산을 담보로 하며, 재무 약정으로서 통합 유형 순자산 최소액 $85.0백만, 최소 유동성 $10.0백만, 최소 자산 커버리지 비율 2.00 대 1.00 및 특정 조건에서 분기별로 시험하는 발동형 최소 이자보상비율 1.50 대 1.00을 규정합니다.
Geospace Technologies Corporation a conclu un First Amended and Restated Credit Agreement avec Woodforest National Bank, prévoyant une facilité de crédit renouvelable d’une durée de trois ans avec une disponibilité maximale de 25,0 M$. La facilité poursuit et prolonge le prêt renouvelable antérieur de la société et porte intérêt, au choix de la société, à 30‑day Term SOFR + 2,75% ou à un Alternate Base Rate + 2,75%, les intérêts devant être payés mensuellement.
L’accord est garanti par substantiellement tous les actifs des emprunteurs (avec certains biens exclus) et impose des engagements financiers comprenant un actif net tangible consolidé minimum de 85,0 M$, une liquidité minimale de 10,0 M$, un ratio minimum de couverture des actifs de 2,00 pour 1,00 et un ratio minimum de couverture des intérêts conditionnel (springing) de 1,50 pour 1,00, testé trimestriellement selon les conditions spécifiées.
Geospace Technologies Corporation hat einen First Amended and Restated Credit Agreement mit der Woodforest National Bank abgeschlossen, der eine dreijährige revolvierende Kreditfazilität mit einer maximalen Verfügbarkeit von $25,0 Millionen vorsieht. Die Fazilität ersetzt und verlängert das vorherige revolvierende Darlehen des Unternehmens und verzinst sich wahlweise mit 30‑day Term SOFR + 2,75% oder mit einem Alternate Base Rate + 2,75%, wobei Zinszahlungen monatlich zu leisten sind.
Die Vereinbarung ist durch im Wesentlichen alle Vermögenswerte der Kreditnehmer besichert (mit bestimmten ausgeschlossenen Vermögenswerten) und enthält finanzielle Covenants, darunter ein Mindestkonsolidiertes materielles Eigenkapital von $85,0 Millionen, eine Mindestliquidität von $10,0 Millionen, ein Mindest-Asset-Coverage-Verhältnis von 2,00 zu 1,00 sowie ein auslösendes Mindestzinsdeckungsverhältnis von 1,50 zu 1,00, das unter den festgelegten Bedingungen quartalsweise geprüft wird.
FAQ
What is the size and term of the new Geospace (GEOS) credit facility?
What interest rates apply to the GEOS revolving credit facility?
What financial covenants must Geospace comply with under the agreement?
Are the loans secured under the GEOS credit agreement?
When is the interest coverage covenant tested under the agreement?
