Comerica Provides $10 Million Credit Facility to Verenium
Verenium Corporation, an industrial biotechnology company focused on the development and commercialization of high-performance enzymes, announced that it has entered into an agreement with Comerica Bank for a two-year, $10 million revolving credit facility.
This credit facility will allow Verenium to borrow up to $8.4 million against eligible foreign and domestic receivables and will cover an existing $1.6 million letter of credit commitment to Verenium’s landlord. The credit facility also immediately frees up $1.6 million in restricted cash which had previously secured the letter of credit.
Subject to certain exceptions, all borrowings under the credit facility will be secured by substantially all of Verenium’s assets, excluding intellectual property, and will bear interest at the daily LIBOR plus 4.75%. The proceeds from this facility will be used for general working capital purposes. In addition, subject to certain limitations, the structure of the credit facility enables Verenium to leverage certain additional assets for additional secured financing.
“We are very pleased with the flexibility this new facility provides the company, and that we have addressed a significant portion of our overall financing needs with a non-dilutive source of capital,” said Jeffrey Black, CEO at Verenium. “This is a prudent next step for us in that it provides a low-cost source of capital to continue to move the business forward.”