OCZ Technology Group, Inc. has entered into a $30 million loan and security agreement with finance company Hercules Technology Growth Capital, Inc. This loan agreement consists of a $15 million term loan and a $15 million revolving loan facility.

"Obtaining this new credit facility is the first step in providing OCZ with a complete capital structure going forward. This capital will be used to strengthen the business, fund future growth, and support emerging enterprise opportunities," said Ralph Schmitt, CEO of OCZ Technology. "I am pleased with the operational improvements our team is making as we continue building a profitable OCZ which is focused on designing innovative, best-in-class Solid State Storage solutions for our valued customers."

OCZ had reduced its use of the Wells Fargo Capital Finance credit facility and had no debt outstanding on it as of February 28, 2013. That facility has been terminated as part of the closing of the Hercules loan agreement. The first $10 million of the term loan was drawn at closing with repayments due in thirty monthly installments beginning in November 2013. The remaining $5 million of the term loan is contingent upon OCZ being current in its SEC filings and achieving certain revenue levels for two consecutive quarters. Pursuant to the loan agreement, OCZ issued Hercules a warrant to purchase 688,073 shares of OCZ Technology common stock at an exercise price of $2.18 per share. In addition to the term loan, OCZ has access to a $10 million revolving loan facility which shall be repaid in full in April 2016. An additional $5 million of revolving loan facility will be available to OCZ upon achieving certain financing covenants.