3-D Geophysical announces credit facility with subsidiary of Wells Fargo Bank.ENGLEWOOD, Colo.--(BUSINESS WIRE)--May 23, 1996--3-D Geophysical Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TDGO) today announced that it has signed a commitment letter with a subsidiary of Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, First Interstate Bank of Texas N.A. ("First Interstate"), to lead a credit facility of up to $18 million secured by the company's accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and equipment. The company anticipates to close the transaction this quarter, subject to certain conditions including formalization for·mal·ize tr.v. for·mal·ized, for·mal·iz·ing, for·mal·iz·es 1. To give a definite form or shape to. 2. a. To make formal. b. of the required documentation. Under the proposal, First Interstate will provide the company with a $15 million, three-year term loan amortized over three years and a $3 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. line renewable annually. The interest rate is Wells Fargo's prime rate plus 1%. At closing, the company intends to draw down approximately $12 million of the term loan facility to finance a portion of the new equipment purchase from Input/Output Inc. and to refinance $4.5 million of conditional sales agreements due to Input/Output Inc. Furthermore, the company will have $3 million of the term loan facility available for additional equipment purchases. With this credit facility, the company will be able to finance the purchase of equipment for contracts in Alaska and Mexico and increase the channel capacity of its Rocky Mountain operations. Overall, the company will increase its recording channel capacity by over 50%. John D. White, chief financial officer, said "This is a major milestone for the company since completing its Initial Public Offering in February, 1996. First Interstate has given TDGO a major vote of confidence by assisting the company in financing its growth strategy." Headquartered in Englewood, 3-D Geophysical Inc. was formed to facilitate a consolidation of seismic data acquisition businesses. The company presently operates nine land-based seismic data acquisition crews and believes it is the second largest land-based seismic acquisition services provider in the United States and Mexico based on the number of crews. The company continues to pursue its strategy of entering new markets and expanding in existing markets through internal growth and by seeking appropriate acquisitions. CONTACT: 3-D Geophysical Inc. J.D. White, CFO See Chief Financial Officer. 303/290-0214 or Strauss Global Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most George Strauss, 212/481-7096 |
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