SAN DIEGO, Oct. 8, 2012 /PRNewswire/ -- Verenium Corporation (Nasdaq: VRNM), a leading industrial biotechnology company focused on the development and commercialization of high-performance enzymes, today announced that it has entered into an agreement with Comerica Bank for a two-year, $10 million revolving credit facility.
This credit facility will allow Verenium to borrow up to $8.4 million against eligible foreign and domestic receivables and will cover an existing $1.6 million letter of credit commitment to Verenium's landlord. The credit facility also immediately frees up $1.6 million in restricted cash which had previously secured the letter of credit.
Subject to certain exceptions, all borrowings under the credit facility will be secured by substantially all of Verenium's assets, excluding intellectual property, and will bear interest at the daily LIBOR plus 4.75%. The proceeds from this facility will be used for general working capital purposes. In addition, subject to certain limitations, the structure of the credit facility enables Verenium to leverage certain additional assets for additional secured financing.
"We are very pleased with the flexibility this new facility provides the company, and that we have addressed a significant portion of our overall financing needs with a non-dilutive source of capital," said Jeffrey Black, Chief Financial Officer at Verenium. "This is a prudent next step for us in that it provides a low-cost source of capital to continue to move the business forward."
Verenium, an industrial biotechnology company, is a global leader in developing high-performance enzymes. Verenium's tailored enzymes are environmentally friendly, making products and processes greener and more cost-effective for industries, including the global food and fuel markets. Read more at www.verenium.com.
Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include, but are not limited to, statements related to Verenium's technology, products and product candidates and product pipeline, lines of business, operations (including Verenium's ability to successfully negotiate and enter into future collaborations and partnerships), capabilities, commercialization activities, customer adoption rates, industry conditions, future financial performance, and near-term and longer-term growth and prospects. Such statements are only predictions, and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to the differences include, but are not limited to, risks associated with Verenium's strategic focus, technologies, products and product candidates and product pipeline (including Verenium's ability to identify, develop and commercialize new products and product candidates, either independently or with collaborators or partners, and market demand for those products and product candidates), dependence on patents and proprietary rights, protection and enforcement of its patents and proprietary rights, the commercial prospects of the industries in which Verenium operates and sells products, Verenium's dependence on manufacturing and/or license agreements, its ability to achieve milestones under existing and future collaboration agreements, the ability of Verenium and its partners to commercialize its technologies and products (including by obtaining any required regulatory approvals) using Verenium's technologies, the timing for launching any commercial products and projects, the ability of Verenium and its collaborators to market and sell any products that it or they commercialize, the development or availability of competitive products or technologies, the future ability of Verenium to enter into and/or maintain collaboration and joint venture or partnership agreements and licenses on a timely basis or at all, and risks and other uncertainties more fully described in Verenium's filings with the Securities and Exchange Commission, including, but not limited to, Verenium's annual report on Form 10-K for the year ended December 31, 2011 and any updates contained in its subsequently filed quarterly reports on Form 10-Q . These forward-looking statements speak only as of the date hereof, and Verenium expressly disclaims any intent or obligation to update these forward-looking statements.
Manager, Corporate Communications
SOURCE Verenium Corporation