Advanced Photonix, Inc. Announces Extension of Line of Credit

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Jun 24, 2014, 09:00 ET

ANN ARBOR, Mich., June 24, 2014 /PRNewswire/ -- Advanced Photonix, Inc.^® (NYSE MKT: API) announced today 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 our 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 20, 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; and 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 31, 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, commented, "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 $2.9M 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%."

About Advanced Photonix, Inc.
Advanced Photonix, Inc.^® (NYSE MKT: API) is a leading supplier of optoelectronic sensors, devices and instruments used by Test and Measurement, Process Control, Medical, Telecommunication and Homeland Security markets. The company has three product lines: Optosolutions focuses on enabling manufacturers to measure physical properties, including temperature, particular counting, color, and fluorescence for Medical, Homeland Security and Process Control applications. The Terahertz sensor product line is targeted to the Process Control, to enable quality control, and Security markets through nondestructive testing. The T-Gauge^® sensor can measure subsurface physical properties, like multi-layers thicknesses, density, moisture content, anomaly detection and some chemical features, online and in real time. High-Speed Optical Receiver (HSOR) products are used by the telecommunication market in both telecommunication equipment and in test and measurement equipment utilized in the manufacturing of telecommunication equipment. For more information visit us on the web at www.advancedphotonix.com.

The information contained herein includes forward looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company; and a decline in the general demand for optoelectronic products.

CONTACT: [email protected]

RELATED LINKS: http://www.advancedphotonix.com

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SOURCE Advanced Photonix, Inc.