Derycz Scientific Secures $3 Million Credit Line From SVB
Thursday, July 29, 2010
Derycz Scientific entered into an arrangement with Silicon Valley Bank for a $3 million revolving line of credit that maturing in 2011.
Peter Derycz, chief executive officer of Derycz Scientific, said, "We are pleased that a financial institution with as solid a reputation as Silicon Valley Bank is on board to help us manage and grow our businesses. Since we are primarily a service company, our largest asset is our accounts receivable. This line of credit gives us the ability to borrow against the receivables in order to manage our business more effectively at a reasonable interest rate. It also gives us more flexibility to make payments to our suppliers that may result in more favorable terms."
According to the terms of the agreement, the line of credit bears interest at the prime rate plus 2% for a period in effect where Derycz Scientific and its subsidiaries maintained an account balance with the SVB (less all indebtedness owed to the bank) of at least $800,000 at all times during the prior calendar month (a streamline period), and at the prime rate plus 4% when a streamline period is not in effect. Derycz Scientific and its subsidiaries must pay the Bank a non-refundable commitment fee of $22,500 and a monthly collateral monitoring fee of $1,000 when a streamline period is in effect and $2,500 when a streamline period is not in effect. The line of credit is secured by all of the assets of Derycz Scientific and its subsidiaries.
Derycz Scientific develops companies, products, services and systems that facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules.
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