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Tuesday, March 12, 2013
OCZ Obtains $30 Million Credit Facility
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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. |
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