SYKESVILLE, MD – January 4, 2017 – GSE Systems, Inc. (“GSE” or “the Company”) (NYSE MKT: GVP), the world leader in real-time high-fidelity simulation systems and training solutions to the power and process industries, today 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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About GSE Systems, Inc.
GSE Systems, Inc. provides performance improvement solutions to the energy and process industries. We improve human performance though turnkey training, unique visualization and simulation applications, and our staff of instructors, as well as plant improvement through our engineering expertise and use of technology to improve plant design, commissioning and operations. The Company has more than 300 employees and over four decades of experience as well as more than 1,100 installations and hundreds of customers in over 50 countries spanning the globe. GSE Systems is headquartered in Sykesville (Baltimore), Maryland, with offices in St. Marys, Georgia; Cary, North Carolina; Huntsville, Alabama; Chennai, India; Nyköping, Sweden; Stockton-on-Tees, UK; Glasgow, UK; and Beijing, China. Information about GSE Systems is available at www.gses.com.
We make statements in this press release that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipates,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.