SAExploration (SAEX) Receives ~$24.4M in Tax Credit Certificates from Alaska's DoR; Can Tap Remaining $15M in Senior Loan Facility
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
SAExploration Holdings, Inc. (Nasdaq: SAEX) announced that it has received approximately $24.4 million of tax credit certificates from the state of Alaska’s Department of Revenue. SAE further announced that as a result of receiving these tax credit certificates, and having substantially satisfied the conditional requirements under its senior term loan facility (the “Senior Loan Facility”), it has been granted access to the remaining $15.0 million of funding available under its Senior Loan Facility.
Jeff Hastings, Chairman and CEO of SAE, commented, “We are very pleased that we have begun to receive tax credit certificates from the State of Alaska sooner than expected and access to the remaining $15.0 million under our Senior Loan Facility ensures our ability to progress through the receipt and monetization of the remaining tax credits. We believe the value that can ultimately be derived from these tax credit certificates, and those yet to be issued, will be highly accretive to the company and to our stockholders.”
While some applications for tax credit certificates are still being processed by the State of Alaska, and certain remaining applications cannot be filed until after January 1, 2017, SAE currently expects to receive an additional $60.5 million of tax credit certificates from the State of Alaska over the next twelve months. While the method, terms and conditions are not certain, the company remains optimistic that it will be able to ultimately monetize a significant portion of its tax credit certificates absent material changes in Alaskan laws and further believes this process could begin before the end of this year. Any amounts received for the tax credit certificates will be applied towards the company’s outstanding accounts receivable. Consistent with the company’s past disclosure practices, however, SAE does not intend to disclose the monetization of any of its tax credit certificates, outside of its customary disclosures made in its periodic filings with the SEC.
Under the terms of SAE’s recently completed comprehensive restructuring, receipt of certificates evidencing Alaskan tax credits in excess of $25.0 million was a condition precedent to the advance of the remaining $15.0 million available under the Senior Loan Facility. Having substantially satisfied this requirement by receiving $24.4 million, or approximately 98%, of the required $25.0 million in face value of tax credit certificates, on October 24, 2016, a majority of the lenders under the Senior Loan Facility entered into Amendment No.1 to the Senior Loan Facility agreement, which waived the $25.0 million requirement, thereby granting SAE access to the remaining $15.0 million.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Third-Party Said Interested in PrivateBancorp (PVTB) as CIBC (CM) Deal is Delayed
- Mylan (MYL) Announces Restructuring Program; Sees Workforce Impact
- Wireless Telecom (WTT) Names Michael Kandell as CFO
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Management Comments
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!