Comerica Renews Scientific Learning Credit Line
Scientific Learning, a provider of technologies for accelerated learning, announced that it completed a private placement of $4.6 million in aggregate principal amount of subordinated debt securities and completed the renegotiation of covenants under its line of credit with Comerica Bank.
“Completing these arrangements strengthens our balance sheet and puts us in a strong position going forward, with $8.6 million of available financing,” said Robert Bowen, chairman and CEO. “We appreciate the support of our investors and Comerica.”
The company sold subordinated notes that mature in two years and accrue interest at a rate equal to 12% per annum. In conjunction with the debt, the company will issue warrants to purchase approximately 1.8 million shares of its common stock with an exercise price of $1.03 per share. The purchasers of the notes are current shareholders, directors and officers.