Hercules Provides $30MM Facility to OCZ Technology
OCZ Technology Group, a provider of solid-state drives for computing devices and systems, announced it has entered into a $30 million loan and security agreement with Hercules Technology Growth Capital encompassing a $15 million term loan and a $15 million revolving loan facility.
The company said it 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 the company being current in its SEC filings and achieving certain revenue levels for two consecutive quarters.
Pursuant to the loan agreement, the company 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, the Company 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 the company upon achieving certain financing covenants.
San Jose, CA-based OCZ Technology Group designs, manufactures and distributes high-performance solid-state storage solutions and premium computer components.
Hercules Technology Growth Capital is a specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science and clean-tech industries at all stages of development.