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24 June 2014

Advanced Photonix amends lending agreements

Advanced Photonix Inc of Ann Arbor, MI, USA (which designs and makes APD, PIN, and FILTRODE photodetectors, HSOR high-speed optical receivers, and T-Ray terahertz instrumentation) has amended its lending agreements with Silicon Valley Bank (SVB) and Partners for Growth (PFG), given the successful firm underwriting by B. Riley & Co LLC of 6.2 million shares of Class A Common Stock (for net proceeds of about $2.9m). On 30 May, Advanced Photonix had announced the pricing of an underwritten public offering of 5,391,304 shares at $0.53 per share, and granted the underwriter B. Riley a 30-day option to purchase up to an additional 808,696 shares.

Under the terms of the amendment, SVB has agreed to extend the maturity date of the firm’s $5m line of credit to 20 June 2016. It has also restored an interest rate matrix based on covenant performance that results in an interest rate on the line of credit ranging from prime rate plus 50 basis points on up to prime rate plus 400 basis points and an interest rate on the term loan ranging from prime plus 75 basis points on up to prime plus 450 basis points.

Also, both SVB and PFG have agreed to convert the three-month trailing adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) covenant into a six-month trailing adjusted EBITDA covenant (measured at each fiscal month end) of negative $850,000 through June 2014, negative $300,000 for July through September 2014, and positive $1 for October through December 2014 and $100,000 each month thereafter, subject to reset upon the submission of the fiscal 2016 budget, but in no case lower than $100,000 on a rolling six-month basis.

SVB and PFG also agreed to reset the existing liquidity ratio covenant to 1.30 to 1.00 through 31 May and 2.0 to 1.0 for all months on or after June 2014, as measured at each month end.

“We are pleased that our lending partners have returned to similar terms that we enjoyed in the past, given the proceeds from our recently completed shelf offering,” comments CEO Richard Kurtz. “This $2.9m cash infusion has allowed us to pay down debt and provide the capital we needed to fund our expected growth over the coming years,” he adds. “We want to thank our lenders and B. Riley for their assistance and look forward to growing the company in our current fiscal 2015 by more than 20%.”

See related items:

Advanced Photonix prices public offering of common stock to raise $2.5m

Advanced Photonix extends line of credit with lenders

Tags: Advanced Photonix

Visit: www.advancedphotonix.com

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