Verenium secures USD-10m credit facility from Comerica Bank

Oct 9, 2012 - US biotech company Verenium Corp (NASDAQ:VRNM) said Monday it had signed an agreement with Comerica Bank (NYSE:CMA) on a USD-10-million (EUR 7.7m) revolving credit facility with a two-year term.

Verenium, which operates in the enzymes and biofuels sectors, plans to use proceeds from the facility to strengthen its working capital.

Thanks to the agreement, Verenium will be able to borrow up to USD 8.4 million with eligible foreign and domestic receivables as collateral and will cover an USD 1.6 million letter of credit commitment to the company’s landlord. The company will also release immediately USD 1.6 million in restricted cash which had so far served as collateral on the letter of credit.

The funds borrowed under the credit facility will be secured by all of Verenium's assets, except its intellectual property, and the company will pay interest of daily LIBOR plus 4.75%.

(USD 1 = EUR 0.771)

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