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Advanced Photonix's line of credit extended

SVB has agreed to extend the maturity date of the company's $5 million line of credit to June 20th, 2016
Advanced Photonix, Inc. has announced that the company has amended its lending agreements with Silicon Valley Bank (SVB) and Partners for Growth (PFG) given the successful firm underwriting by B. Riley of 6.2 million shares of its Class A Common Stock for net proceeds of approximately $2.9 million.

Under the terms of the amendment, SVB agreed to extend the maturity date of the company's $5 million line of credit to June 20th, 2016.

SVB 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.

Both SVB and PFG agreed to convert the three month trailing adjusted EBITDA 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 May 31st, 2014 and 2.0 to 1.0 for all months on or after June 2014 as measured at each month end.

Richard Kurtz, Chief Executive Officer, comments, "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. This $2.9 million cash infusion has allowed us to pay down debt and provide the capital we needed to fund our expected growth over the coming years. 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 percent."

Advanced Photonix is a supplier of optoelectronic sensors, devices and instruments used by Test and Measurement, Process Control, Medical, Telecommunication and Homeland Security markets.
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