Pulse Seismic Inc. Announces Renewal and Extension of Revolving Credit Facility
CALGARY, Alberta, Dec. 21, 2021 (GLOBE NEWSWIRE) -- Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to announce it has renewed its revolving credit facility and extended the maturity date for two years to January 15, 2025.
The facility’s available borrowing amount remains at $25.0 million and all other major terms, including financial covenants, are unaffected by the renewal. As of today, the balance drawn on the revolving credit facility is $1.4 million, leaving $23.6 million available.
At the end of 2020 Pulse owed a total of $28.0 million in long-term debt, consisting of $18.0 million owing on the senior revolving credit facility and $10.0 million in subordinated debt to a third party. In June 2021, the subordinated debt was fully repaid, and by October 2021 the balance owing on the revolver had been repaid. Since then the Company has made $2.8 million in dividend payments including a $0.04 per share special dividend and the first of a $0.0125 reinstated regular quarterly dividend.
Pulse has had an excellent year, largely driven by transaction-based sales related to E&P industry consolidation, as announced in the 2021 sales update last week. The significant amount of cash to be received in January, including the $9.7 million related to the large deal that was finalized on December 13, 2021, will enable repayment of the revolving credit facility’s balance.
The revolving credit facility provides the Company with flexibility and liquidity for future strategic growth. As the owner of the largest seismic data set in western Canada, Pulse is pleased to have the ongoing support of its long-term lender as it strives to be the primary provider of readily available seismic data to traditional E&P customers as well as energy transition customers.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada’s oil and natural gas exploration and development occur.
For further information, please contact:
Neal Coleman, President and CEO
Pamela Wicks, Vice President Finance and CFO
Please visit our website at www.pulseseismic.com
This document contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities legislation, including, but not limited to, statements regarding:
- Recent events on the political, economic, regulatory, public health and legal fronts affecting the industry’s medium- to longer-term prospects;
- The Company’s capital resources and sufficiency thereof to finance future operations, meet its obligations associated with financial liabilities and carry out the necessary capital expenditures through 2022;
- Oil and natural gas prices and forecasted trends;
- Oil and natural gas company capital budgets;
- Future demand for seismic data;
- Future seismic data sales; and
- Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance, as they relate to the Company or to the oil and gas industry as a whole.
By its very nature, forward-looking information involves inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information. These factors include, but are not limited to: volatility of oil and natural gas prices; risks associated with the oil and gas industry in general; the Company’s ability to access external sources of debt and equity capital; credit, liquidity and commodity price risks; environmental, health and safety risks, including those related to the COVID-19 pandemic; federal and provincial government laws and regulations, including those pertaining to taxation, royalty rates, environmental protection, public health and safety; competition; the loss of seismic data; the introduction of new products; and climate change.
Pulse cautions that the foregoing list of factors that may affect future results is not exhaustive. Additional risks and factors and information related thereto which could affect the Company’s operations and financial results is included under “Risk Factors” in the in the Company’s most recent annual information form, and in the Company’s most recent audited annual financial statements, most recent MD&A, management information circular, quarterly reports, material change reports and news releases. Copies of the Company’s public filings are available on SEDAR at www.sedar.com.
The forward-looking information contained in this document is provided as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by law. The forward-looking information in this document is provided for the limited purpose of enabling current and potential investors to evaluate an investment in Pulse. Such forward-looking information may not be appropriate, and should not be used, for other purposes.