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| SFE > SEC Filings for SFE > Form 8-K on 11-Feb-2009 | All Recent SEC Filings |
11-Feb-2009
Entry into a Material Definitive Agreement, Termination of a Material D
Safeguard Scientifics, Inc. ("Safeguard"), Safeguard Delaware, Inc. ("SDI") and Safeguard Scientifics (Delaware), Inc. ("SSDI") entered into the Loan and Security Agreement dated as of February 6, 2009 (the "SVB Loan Agreement"), by and among Silicon Valley Bank ("Bank"), Safeguard, SDI and SSDI. SDI and SSDI are wholly owned subsidiaries of Safeguard. The SVB Loan Agreement provides Safeguard with a new revolving credit facility in the maximum aggregate amount of $50 million that provides for borrowings, guarantees and issuances of letters of credit (subject to a $20 million sublimit). Actual availability under the credit facility will be based on the amount of cash held by the Company at the Bank as well as the value of the Company's public and private partner company interests. This credit facility bears interest at the Bank's prime rate for outstanding borrowings, subject to an increase in certain circumstances. Other than for limited exceptions, Safeguard is required to maintain all of its depository and operating accounts and not less than 75% of its investment and securities accounts at the Bank. The credit facility matures on December 31, 2010.
The information set forth above is qualified in its entirety by reference to the Loan and Security Agreement attached hereto as Exhibit 10.1, which exhibit is incorporated herein by reference. A copy of the press release issued by Registrant in connection with the SVB Loan Agreement is attached hereto as Exhibit 99.1.
In conjunction with the execution of the SVB Loan Agreement, SDI and SSDI will terminate the Amended and Restated Loan and Security Agreement, dated as of June 30, 2008, by and among SDI, SSDI and Comerica Bank. Notwithstanding such termination, SDI and SSDI will continue to guaranty the obligations of its majority-held subsidiary, Clarient, Inc., under its continuing credit facility with Comerica Bank and will maintain a cash account at Comerica Bank in the minimum amount of $12.3 million to support such guaranty. At present such Clarient credit facility matures on March 31, 2009, subject to extension.
Registrant incorporates herein by reference the information set forth in item 1.01 above relating to the SVB Loan Agreement.
(d) Exhibits.
10.1 Loan and Security Agreement dated as of February 6, 2009, by and among Silicon Valley Bank, Safeguard Scientifics, Inc., Safeguard Delaware, Inc. and Safeguard Scientifics (Delaware), Inc.
99.1 Press Release dated February 10, 2009
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