Geospace Technologies Corporation entered into a Revolving Loan and Security Agreement with Amerisource Funding, Inc. on October 29, 2026. The agreement, effective on that date, involves the Company and its subsidiary GTC, Inc. as borrowers and Amerisource as the lender.
The new facility provides a revolving credit line with a maximum availability of $25 million, subject to a borrowing base. This replaces the Company's prior credit agreement with Woodforest National Bank. The Company repaid an outstanding loan balance of $7.5 million under the previous Woodforest Credit Agreement at the closing of the new transaction. The Woodforest Credit Agreement was terminated, though the Company did not incur any material early termination penalties.
Under the terms of the new agreement, interest on outstanding borrowings accrues at a rate of the prime rate plus 3.5% per annum. The Company is required to make monthly interest payments. The facility is secured by substantially all of the assets of the Borrowers, with certain excluded property excluded. It is also guaranteed by certain of the Company's subsidiaries.
The agreement includes a 1.00% annual commitment fee and a 0.25% non-usage fee. It also stipulates a minimum tangible net worth covenant of $65.0 million. The facility is for a three-year term.
Events of default under the agreement include non-payment, covenant breaches, cross-defaults to other obligations owed to Amerisource, bankruptcy, a change in control, and a material adverse change. Upon the occurrence of a default, the obligations may be accelerated and bear interest at a default rate of 18% per annum.
