Geokinetics Announces Financial Covenants Waiver and Third Amendment to Revolving Credit Facility
December 14 2010 - 4:20PM
Marketwired
Geokinetics Inc. (NYSE Amex: GOK) today announced that it has
entered into an agreement with its lenders that provides the
Company with a waiver related to the Revolving Credit Facility due
2013 for the cumulative EBITDA covenant for the month ended
November 30, 2010 and for all financial covenants at the December
31, 2010 measurement date. In addition, the Company has amended its
Revolving Credit Facility with the Royal Bank of Canada. Among
other things, the third amendment provides adjustments to a monthly
maximum total leverage ratio and a monthly minimum interest
coverage ratio. It also requires that the Company adhere to a
monthly liquidity test, monthly senior notes interest reserve and
monthly cumulative adjusted EBITDA targets commencing with the
month ending January 31, 2011 through the month ending December 31,
2011. Furthermore, capital expenditures for the fiscal year 2011
may not exceed $40 million. The permitted outstanding borrowing
amount under the revolver remains unchanged at $40 million, of
which $29 million was outstanding as of December 13, 2010.
Richard F. Miles, President and Chief Executive Officer,
commented, "We believe that the latest amendment related to the
revolving credit facility will provide us with the relief we need
to run our business. Bidding activity continues to be strong and we
expect to benefit from the recovery we see taking hold in the
markets we serve, both domestically and internationally."
About Geokinetics Inc.
Geokinetics Inc. is a leading provider of seismic data
acquisition, seismic data processing services and multi-client
seismic data to the oil and gas industry worldwide. Headquartered
in Houston, Texas, Geokinetics is the largest Western contractor
acquiring seismic data onshore and in transition zones in oil and
gas basins around the world. Geokinetics has the crews, experience
and capacity to provide cost-effective world class data to our
international and North American clients. For more information on
Geokinetics, visit www.geokinetics.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements, other than statements of
historical facts, included in this press release that address
activities, events or developments that Geokinetics expects,
believes or anticipates will or may occur in the future are
forward-looking statements. These statements include but are not
limited to statements about our ability to comply with covenants in
our credit facilities, the business outlook for the year, future
contract awards, financial performance and statements with respect
to future events. These statements are based on certain assumptions
made by Geokinetics based on management's experience and perception
of historical trends, industry conditions, market position, future
operations, profitability, liquidity, backlog, capital resources
and other factors believed to be appropriate. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of Geokinetics, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. These include risks relating to
general economic conditions and conditions in the oil and gas
industry, financial performance and results, job delays or
cancellations, reductions in oil and gas prices, impact from severe
weather conditions and other important factors that could cause
actual results to differ materially from those projected, or
backlog not to be completed, as described in the Company's reports
filed with the Securities and Exchange Commission. Although
Geokinetics believes that the expectations reflected in such
statements are reasonable, it can give no assurance that such
expectations will be correct. All of Geokinetics' forward-looking
statements, whether written or oral, are expressly qualified by
these cautionary statements and any other cautionary statements
that may accompany such forward-looking statements. Any
forward-looking statement speaks only as of the date on which such
statement is made and Geokinetics undertakes no obligation to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Contact: Scott M. Zuehlke Director of Investor Relations
Geokinetics (713) 850-7600
Geokinetics, Inc. (AMEX:GOK)
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