Bioplastic company Danimer Scientific entered into an asset-based revolving credit and security agreement with Mountain Ridge Capital secured primarily by the company’s accounts receivable and inventory.
The credit and security agreement provides for borrowings under a revolving commitment of $20 million with availability determined by a borrowing base formula as provided in the agreement. The agreement, among other things, also allows for increases in the commitment up to an additional $5 million and matures on or about April 19, 2027 (earlier maturity is subject to occurrence of certain events). Danimer is expected to use the revolving loans for, among other things, general corporate purposes and working capital needs as permitted by the credit and security agreement.
