TSX Symbol - PSD
CALGARY, Dec. 17 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") announced today that the Company has closed a new $75 million syndicated revolving credit facility. The new facility is provided by a syndicate of Canadian financial institutions led by Roynat Inc. ("Roynat") and includes ATB Financial and TD Bank. This facility is intended to provide additional financing for growth of the Company's seismic data library through dataset acquisitions and participations surveys.
As of the closing of the new facility, proceeds of $24.0 million have been initially drawn to replace the balance of the former Roynat term loan, leaving $51.0 million available for future draws. The current floating interest rate on the new facility is 5.2% which is based on a combination of the Bankers' Acceptance Rate and a pricing spread tied to the Company's financial covenants.
Douglas Cutts, President and Chief Executive Officer commented "Pulse is extremely pleased with this new financial arrangement. Our conservative approach to fiscally managing Pulse and maintaining a strong balance sheet played an important role in securing this credit facility during unstable economic and financial market conditions. We are in an excellent position to continue executing our strategy of prudently growing our seismic data library. We expect to see a number of attractive growth opportunities in the future, and with this new credit facility we now have the dry powder to act quickly, appropriately and opportunistically."
ABOUT PULSE
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 second-largest licensable seismic data library in Canada, currently consisting of approximately 257,300 net kilometres of 2D seismic and 12,500 net square kilometres of 3D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occurs.
Pulse has publicly traded on the TSX since 2001. The Company has paid its shareholders a quarterly dividend since 2003 and at Pulse's current share price provides one of the highest dividend yields on the TSX.
Forward Looking Statements
This document contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:
- estimated future demand for seismic data;
- estimated future seismic data sales;
- estimated future demand for participation surveys;
- estimated costs, funding, size, commencement dates and delivery dates
of participation surveys;
- planned future participation surveys;
- planned growth of the seismic data library;
- estimated future revenues, cash flow, cash EBITDA and earnings;
- estimated future oil and gas drilling activities;
- planned future dividend payments;
- planned future normal course issuer bid purchases;
- Pulse's business strategy;
- other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions,
results and performance.
Often, but not always, forward looking information uses words or phrases such as: "expects", "does not expect" or "is expected", "anticipates" or "does not anticipate", "plans" or "does not plan", "estimates" or "estimated", "projects" or "projected", "forecasts" or "forecasted", "believes" or "does not believe", "intends" or "does not intend", "likely" or "unlikely", "possible", "probable", "scheduled", "positioned", "goal", "objective", "hopes", "optimistic" or states that certain actions, events or results "should", "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors include, but are not limited to:
- the demand for seismic data and participation surveys;
- the pricing of data library license sales;
- the level of pre-funding of participation surveys, and the ability of
the Company to make subsequent data library sales from such
participation surveys;
- the ability of the Company to complete participation surveys on time
and within budget;
- the price and demand for oil and natural gas;
- the level of oil and gas exploration and development activities;
- the ability of the Company's customers to raise capital;
- environmental, health and safety risks;
- the effect of seasonality and weather conditions on participation
surveys;
- federal and provincial government laws and regulation, including
taxation, royalty rates, environment and safety;
- competition from other seismic data library companies;
- dependence upon qualified seismic field contractors;
- dependence upon key management, operations and marketing personnel.
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods.
Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented. The Company does not update forward looking information should circumstances change or management's assumptions, expectations, estimates or opinions change, except as required by securities laws.