Daily News: May 8, 2013

Comerica Ups BIOLASE Credit Facility, Lowers Rates

BIOLASE, a manufacturer of dental lasers, announced that Comerica Bank has increased its credit facility agreements from $8 million to $10 million, decreased both the domestic and Ex-Im interest rates, established financial and non-financial covenants for the year ending December 31, 2013, and added $1 million of additional mid-quarter borrowing flexibility.

The amended credit agreement increased the borrowings against certain domestic accounts receivable and inventory from $4 million to $6 million, for a combined aggregate commitment of borrowings up to $10 million. The interest rates on the outstanding principal balance of the credit agreements will 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, a reduction of 1.00% and 0.50% in the interest rates of the Domestic and Ex-Im revolvers, respectively. In addition, the amended credit agreement will provide for $1 million of additional borrowings against inventory for 30 days during the middle of a quarter.

The lines of credit mature on May 1, 2014, at which date any remaining borrowings and accrued interest under the lines of credit become due and payable. As of March 31, 2013, the company had outstanding borrowings totaling approximately $3.3 million, which included $1.8 million under the domestic revolver and $1.5 million under the Ex-Im revolver.

Irvine, CA-based BIOLASE is a biomedical company that develops, manufactures, and markets lasers in dentistry and medicine and also markets and distributes dental imaging equipment; products that are focused on technologies that advance the practice of dentistry and medicine.