SAExploration Holdings Inc (NASDAQ: SAEX) is having an overwhelmingly positive start to the trading session this morning, and for good reason. The company announced news surrounding an upsized credit facility that proved to be a source of excitement for investors. Today, we’ll talk about:
- The credit facility news;
- what we’re seeing from SAEX stock as a result; and
- what we’ll be watching for ahead.
SAEX Announces Upsized Credit Facility
As mentioned above, SAExploration is having an incredibly strong start to the trading session this morning after the company announced news with regard to a credit facility. In a press release issued early this morning, the company announced that on July 5, 2018 it amended its existing credit agreement to increase the lenders’ maximum commitment to $30,000,000. Also, SAEX announced that in connection with the amendment, it has drawn an additional $10,000,000 in borrowings.
Along with the upsize of the credit facility, the company said that it intends on redeeming the remaining $1.865 million outstanding principal amount of its original $150 million of 10.00% Secured Notes due 2019. On August 4, 2018, the holders of these Notes will receive a redemption price of 100% of the principal amount of the notes plus all accrued and unpaid interest up to the Redemption Date. In a statement, Jeff Hastings, Chairman and CEO at SAEX, had the following to offer:
The increase to our credit facility provides us with immediate additional liquidity to position us to capitalize on our near term strategic objectives and to fund working capital needs in advance of a potential return in activity. We believe this transaction is also reflective of our financing partners’ long-term commitment to SAE.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of SAExploration, the news proved to be overwhelmingly positive. With the upsized credit facility, the company is strengthening its balance sheet, setting a strong foundation for growth ahead. So, it comes as no surprise that the news excited investors who are sending the stock on a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:00), SAEX is trading at $1.91 per share after a gain of $0.35 per share or 22.65% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SAEX. In particular, we’re interested in following the story surrounding the company’s use of the newly available funds and growth following the setting of this strong financial foundation. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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