Boston, MA 09/29/2014 (wallstreetpr) – Violin Memory Inc (NYSE:VMEM) has just extinguished its credit agreement with Silicon Valley Bank (SVB) as specified in its 8-k filing dated September 26, 2014. According to the filling with the Securities Exchange Commission (SEC), the company said that it has terminated the agreement with the SVB, which consisted of loans of close to $40.0 million. Out of the total loan amount, $10 million is related to the term loan, while the rest of $30 million is in the form of a line of credit.
Issuance Of Notes
The filling stated that Violin Memory Inc (NYSE:VMEM) issued 4.25% Convertible Senior Notes of aggregate principal amount of $105.0 million, which are due to mature by the year 2019. The issuance of these notes was undertaken through private placement, while the initial buyers were given the option to buy an additional $15 million of aggregate principal amount in order to cover over allotments. The purpose of the company to raise this notes was to seek $100.8 million of net proceeds, which was intended to be employed for various general corporate purposes and to repay the outstanding amount due to the SVB.
Payment Of Outstanding Credit
Therefore, following the issuance of the Notes and reciept of the net proceeds, Violin chose to put an end to its agreement with the SVB and acting in accordance with the terms of the agreement, Violin Memory Inc (NYSE:VMEM) paid $10 million of principal amount to the SVB. Also, it paid the accrued interest and other miscellaneous fee amounting $62,325, as owned under the agreement. Along side this, the company also paid facility termination fee of $900,000, which is refundable to the company if it plans to draw another credit from the SVB within a period of sixty days of such payment. Subsequent to this filling, the shares of the company opened up higher at 4.35 on Friday.
