Exabyte Announces New Loan Agreement with Wells Fargo Business Credit, Inc.18 March 2005
Exabyte Corporation, the leading innovator in tape backup, restore and archival systems, today announced that the Company has entered into a new asset-based line-of-credit agreement with Wells Fargo Business Credit, Inc., a subsidiary of Wells Fargo & Company. The arrangement with Wells Fargo Business Credit, Inc. replaces the Company's previous loan agreement with Silicon Valley Bank, which was scheduled to expire on September 30, 2005. The new facility provides for borrowings of up to $20,000,000 based on 80% of eligible accounts receivable and 60% of eligible finished goods inventory, bears interest at the lender's prime rate plus 1%, and matures on March 31, 2008. Borrowings are secured by substantially all of the Company's assets, and the agreement includes various financial covenants relating to operating results and the maintenance of minimum levels of net worth, among others. The new agreement provides the Company with several advantages, including additional borrowing availability, as no borrowings were available based on inventory balances under the Silicon Valley Bank agreement.
"The additional borrowing capacity under the new agreement will improve our liquidity during 2005, as we drive towards our primary goal of achieving profitability," noted Carroll Wallace, CFO of Exabyte. "The ability to more appropriately leverage our assets was a key factor in establishing this new relationship. In addition, the many value-added services and resources of an institution such as Wells Fargo Business Credit will clearly be assets to the Company in 2005 and beyond."
About Exabyte Corporation
Exabyte Corporation (OTCBB: EXBT), now entering its 20th year, is a recognized pioneer and leading innovator in tape storage. Its heritage comprises an impressive list of industry "firsts," including the first manufacturer of tape drives to break the 1, 2, and 5 GB capacity barriers; the first to introduce 8mm, native Fibre Channel, and FireWire tape drives and libraries; and the first and only manufacturer to offer VXA Packet Technology, which enables its VXA Packet drives, autoloaders and tapes to read and write data in packets like the Internet, allowing far superior restore integrity, exceptional transfer speeds and scalable tape capacities. With award-winning VXA Packet Technology, patented ExaBotics(TM) and its innovative engineering approach, Exabyte delivers new VXA(TM) and LTO(TM) (Ultrium(TM)) products that consistently raise the bar for industry standards in engineering, quality and data reliability. The company's product suite is ideally suited for SMB and departmental servers, workstations, LANs, and SANs, providing dramatically higher capacity, speed and reliability at competitive prices. Exabyte has a worldwide network of OEMs, distributors and resellers that share the company's commitment to innovation and customer service, including IBM, HP, Fujitsu Siemens, Apple, Imation, Bull, Toshiba, Logitec, Kontron, Tech Data, Ingram Micro, CDW, Condre, and Arrow Electronics. For additional information, call 1-800-EXABYTE or visit www.exabyte.com. For investor relations inquiries, contact Kelly Beavers at investor@exabyte.com.
Contacts
Trippe-Marino, Inc. (Exabyte PR)
Bill Marino, 303-988-5133
bmarino@trippemarino.com
Source: Business Wire
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