Daily News: September 11, 2013

Comerica Amends BIOLASE Credit Agreements

BIOLASE, Inc., a manufacturer and distributor of dental lasers, announced that it amended the terms of its two revolving credit facility agreements with Comerica Bank.

BIOLASE’s credit agreements with Comerica, as previously amended, provide for borrowings against certain domestic accounts receivable and inventory and certain export related accounts receivable and inventory (the Ex-Im revolver). The amendment reverted the available maximum borrowings under the domestic revolver to $4 million from $6 million (in addition to up to another $4 million on the Ex-Im revolver).

The interest rates on the outstanding principal balance of the credit facilities will continue to bear interest at annual percentage rates equal to the daily prime rate plus 2.00% for the Domestic Revolver and 1.50% for the Ex-Im Revolver. Amendment No. 3 also revised certain financial covenants for the quarters ending September 30, 2013 and December 31, 2013, as defined therein. The maturity date for the Credit Agreements remains May 1, 2014.

Federico Pignatelli, chairman and CEO, said, “We are very pleased that we have completed the process of amending our Credit Agreements with Comerica Bank. BIOLASE is now entering what has traditionally been its strongest revenue period of the year, September through December, and finalizing the Amendment No. 3 provides us with the flexibility to continue our growth while on the way to generating cash and profitability. Comerica has been a good lending partner. We appreciate their continued support of our long-term strategic business objectives and look forward to building further on our relationship.”

In connection with the amendment, the company also issued warrants to Comerica to purchase up to 100,000 shares of company common stock at an exercise price of $2.00 per share. The 2013 Comerica warrants vest in four equal quarterly tranches beginning on December 31, 2013 and will expire if unused on September 6, 2018. The company incurred a fee of $8,000 to process the amendment.

BIOLASE is a biomedical company that develops, manufactures and markets lasers in dentistry and medicine and also markets and distributes high-end 2D and 3D digital imaging equipment and CAD/CAM intraoral scanners; products that are focused on technologies that advance the practice of dentistry and medicine.