Geospace swaps lender for new $25M credit line as cash burn mounts
What's the deal? Geospace TechnologiesDealroom has a profile for this one. Try Dealroom → has secured a three-year revolving credit facility of up to $25 million from Amerisource Funding, replacing its prior agreement with Woodforest National BankDealroom has a profile for this one. Try Dealroom →. The deal, signed October 29, 2026, refinanced a $7.5 million balance drawn under the Woodforest line.
The terms: Borrowings accrue interest at the prime rate plus 3.5%, with monthly payments. The agreement carries a 1% annual commitment fee, a 0.25% non-usage fee, early termination fees up to 3% of the facility, and a $65 million minimum tangible net worth covenant. A default triggers an 18% rate.
Why now? The seismic-equipment maker is under real liquidity pressure. It posted a $9.7 million net loss in its fiscal third quarter and used $27.3 million of cash in operating activities over the first nine months of fiscal 2026.
The fine print: This is not $25 million in fresh capital. The facility is subject to a borrowing base, secured by substantially all borrower assets, and guaranteed by certain subsidiaries. Geospace said it incurred no material penalties ending the Woodforest line, which was set to mature August 29, 2028.
A $10.8 million US Navy contract and expected PetrobrasDealroom has a profile for this one. Try Dealroom → milestone payments could offer some support. But timing and weaker demand for seismic gear leave the credit line's main value in day-to-day cash management.
The signal: For a company burning cash against soft demand, swapping one revolving lender for another preserves access to working capital without adding equity dilution — a defensive move to keep liquidity open while it waits on contract payments.
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