SYKESVILLE, Md. –
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.”
ABOUT GSE SYSTEMS, INC.
GSE Systems, Inc. is a world leader in real-time high-fidelity
simulation, providing a wide range of simulation, training and
engineering solutions to the power and process industries. Its
comprehensive and modular solutions help customers achieve performance
excellence in design, training and operations. GSE’s products and
services are tailored to meet specific client requirements such as
scope, budget and timeline. The Company has over four decades of
experience, 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 Huntsville, Alabama;
Chennai, India; Nyköping, Sweden; Stockton-on-Tees, UK; and Beijing,
China. Information about GSE Systems is available at www.gses.com.
ABOUT CITIZENS FINANCIAL GROUP, INC.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest
financial institutions, with $147 billion in assets as of September 30,
2016. Headquartered in Providence, Rhode Island, Citizens offers a broad
range of retail and commercial banking products and services to
individuals, small businesses, middle-market companies, large
corporations and institutions. In Consumer Banking, Citizens helps its
retail customers “bank better” with mobile and online banking, a 24/7
customer contact center and the convenience of approximately 3,200 ATMs
and approximately 1,200 Citizens Bank branches in 11 states in the New
England, Mid-Atlantic and Midwest regions. Citizens also provides wealth
management, mortgage lending, auto lending, student lending and
commercial banking services in select markets nationwide. In Commercial
Banking, Citizens offers corporate, institutional and not-for-profit
clients a full range of wholesale banking products and services
including lending and deposits, capital markets, treasury services,
foreign exchange and interest hedging, leasing and asset finance,
specialty finance and trade finance.
Citizens operates through its subsidiaries Citizens Bank, N.A., and
Citizens Bank of Pennsylvania as Citizens Bank, Citizens Commercial
Banking and Citizens One. Additional information about Citizens and its
full line of products and services can be found at www.citizensbank.com.
FORWARD LOOKING STATEMENTS
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,” “anticipate,” 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170104006171/en/
GSE Systems, Inc.
Chris Sorrells, 410-970-7802
Chief
Operating Officer
or
The Equity Group Inc.
Devin
Sullivan, 212-836-9608
Senior Vice President
dsullivan@equityny.com
or
Kalle
Ahl, CFA, 212-836-9614
Senior Associate
kahl@equityny.com