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Adesto Secures $20MM Debt Facility From Western Alliance Bank

July 14, 2016, 07:36 AM
Filed Under: Technology

Adesto Technologies, a leading provider of application-specific, ultra-low power non-volatile memory products, announced that it has closed on a $20 million senior secured debt facility. The new debt facility replaces the existing April 2015 debt facility. In an 8-K filing with the SEC, Western Alliance Bank was named as the lender. The following excerpt from the filing provides greater detail:

On July 7, 2016, Adesto Technologies Corporation (the “Company”), entered into a business financing agreement (“Credit Facility”) with Western Alliance Bank (“Western Alliance”) as the lender. The Credit Facility provides for (i) a term loan of up to $18.0 million and (ii) a revolving credit line advance in the aggregate amount of the lower of (x) $2.0 million and (y) 80% of certain of the Company’s receivables. The term loan made pursuant to the Credit Facility bear interest at a rate per annum equal to the greater of the prime rate and 3.5%, plus 0.75%, and matures in June 2019. The Company is also required to pay a facility fee of $150,000 upon entry into the Credit Facility and an additional $10,000 on July 7, 2017. To the extent there are outstanding balances under the revolving credit line advance, Western Alliance will have exclusive right to receive all collections on all of the Company’s receivables and the Company will pay maintenance fees and additional charges to Western Alliance. The Company will make interest-only payments on the term loan from July 2016 through September 2016 and will make principal and interest payments in 33 equal monthly installments starting October 2016.

President and CEO Narbeh Derhacobian stated, “The closing of this debt facility further fortifies our balance sheet, while also providing greater financial flexibility as we execute on our growth initiatives. We continue to make great strides toward expanding our presence in targeted vertical markets, including consumer applications where the emergence of IoT is driving a growing need for specialized, energy-efficient memory solutions.

“More specifically, this financing helps further strengthen our financial position as we continue to target high-volume opportunities with multiple Tier-one companies. It also provides access to non-dilutive capital, enabling Adesto to consider possible strategic options for further expanding our presence in the consumer space and/or adding complementary technologies or products to help drive additional growth in the future.”

Adesto Technologies is a leading provider of application-specific, ultra-low power non-volatile memory products. The company has designed and built a portfolio of innovative products with intelligent features to conserve energy and enhance performance including Fusion Serial Flash, DataFlash® and products based on Conductive Bridging RAM (CBRAM®) technology. CBRAM® is a breakthrough technology platform that enables 100 times less energy consumption than today’s memory technologies without sacrificing speed and performance. Adesto is focused on delivering differentiated solutions and helping its customers usher in the era of the Internet of Things.

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