OCZ Technology Obtains $30M Credit Facility with Hercules Technology Growth Capital

OCZ Technology Group

, a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems, today announced that it has entered into a $30 million loan and security agreement ("loan agreement") with Hercules Technology Growth Capital, Inc. ("Hercules"). This loan agreement consists of a $15 million term loan and a $15 million revolving loan facility. The Company had reduced its use of the Wells Fargo Capital Finance credit facility and had no debt outstanding on it as of February 28, 2013. That facility has been terminated as part of the closing of the Hercules loan agreement. The first $10 million of the term loan was drawn at closing with repayments due in thirty monthly installments beginning in November 2013. The remaining $5 million of the term loan is contingent upon the Company being current in its SEC filings and achieving certain revenue levels for two consecutive quarters. Pursuant to the loan agreement, the Company issued Hercules a warrant to purchase 688,073 shares of OCZ Technology common stock at an exercise price of $2.18 per share. In addition to the term loan, the Company has access to a $10 million revolving loan facility which shall be repaid in full in April 2016. An additional $5 million of revolving loan facility will be available to the Company upon achieving certain financing covenants. Further information with respect to the loan agreement with Hercules will be contained in a Current Report on Form 8-K to be filed by OCZ Technology with the Securities and Exchange Commission.