PNC Bank provided Luna Innovations Incorporated, a provider of optical technology, with a secured debt facility of $27.5 million.
The agreement provides the company with a term loan of $12.5 million, with an interest rate of LIBOR plus a margin ranging from 1.75% to 2.25% based on a net leverage ratio. The agreement also provides the company with a revolving line of credit of up to $15 million, also with an interest rate of LIBOR plus a margin ranging from 1.75% to 2.25% based on a net leverage ratio.
The new term loan and a portion of the new revolving credit facility will be used to fund a portion of the purchase price for Luna’s acquisition of OptaSense Holdings.
“We are grateful for the strong support we received from PNC as represented by our new debt facility,” Scott Graeff, president and CEO of Luna, said. “This financing is allowing Luna to acquire a strong strategic business that provides capabilities we have been seeking that we believe will allow us to continue to drive profitable growth.”
