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Citizens Bank Provides $5MM Revolving Credit Facility to GSE Systems

January 05, 2017, 07:18 AM
Filed Under: Technology

GSE Systems, the world leader in real-time high-fidelity simulation systems and training solutions to the power and process industries, announced that it has entered into a new $5 million revolving line of credit, which replaces the Company’s previous credit facility that was scheduled to mature in March 2017.

The new three-year credit facility with Citizens Bank provides GSE the ability to utilize the facility for general working capital with a lower interest rate of LIBOR plus 2.25%, a reduction in letter of credit fees from 1.75% to 1.25%, and lower unused capacity fees and removes the previous credit facility’s restricted cash requirement for future letters of credit. The agreement is subject to standard financial covenants and reporting requirements.

Chris Sorrells, GSE’s Chief Operating Officer, said, “We are pleased to close on this new enhanced credit facility, which reflects GSE’s strengthening business fundamentals and increasing profitability over the past year under our ongoing transformation. Today our Company is on strong financial footing and as a result, well-positioned to effect our growth strategy. This new facility, coupled with the cash generated by our business, provides us with additional flexibility as we pursue our strategic initiatives and continue the expansion of our business."

Emmett Pepe, GSE’s Chief Financial Officer, added, “We look forward to building a strong relationship with Citizens Bank, our new lending partner, as we continue to implement best practices in GSE’s finance department to support the growth of the business. The progress of the last year is allowing us the opportunity to continue to improve our business partners and drive better economic outcomes for our shareholders. The Company intends to use proceeds from the new facility for general corporate purposes and to fund the Company's strategic initiatives.”

“GSE Systems is a great new client for Citizens as we continue to expand our Maryland business. We look forward to helping them achieve their near- and long-term strategic and financial goals,” said Ted Prushinski, Senior Vice President and Market Executive at Citizens Bank. “Listening, advising and providing creative solutions is how Citizens delivers value for clients at every stage of their business life cycle.”

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