Integrated BioPharma Announces Closing of $11.7 Million Revolving Credit Facility and Refinancing of Subordinated Debt
June 29 2012 - 4:10PM
Integrated BioPharma, Inc. (OTCBB:INBP) announced today the closing
of a new five year $11.7 million revolving credit and term facility
with PNC Bank, National Association on June 27, 2012 and the
refinancing of INBP's subordinated debt.
The PNC Bank credit facility consists of a $8,000,000 revolving
line of credit and a $3,727,000 term loan, secured by all assets of
INBP and its active subsidiaries. INBP borrowed an initial
revolving advance of approximately $2,679,000. Revolving credit
line advances bear interest at PNC's Base Rate or the Eurodollar
Rate, at INBP's option, plus 2.75%. The term loan bears interest at
PNC's Base Rate or the Eurodollar Rate, at INBP's option, plus
3.25%.
INBP also announced today that on June 27, 2012 it completed a
refinancing of its defaulted subordinated convertible note in the
original principal amount of $4,500,000 held by CD Financial, LLC,
an affiliate of two of INBP's directors, and a second promissory
note in the original principal amount of $300,000 held by CD
Financial, LLC. As part of this refinancing, INBP issued to CD
Financial, LLC two promissory notes, in the original principal
amounts of $5,300,000 and $1,714,000. The notes are also secured by
all assets of INBP and its active subsidiaries, bear a per annum
interest rate of 6% and mature on July 7, 2017. The lien of CD
Financial and its payment rights in respect of the notes are
subordinated to PNC Bank. The $5,300,000 promissory note is
convertible at the option of CD Financial, LLC into common stock of
INBP at a conversion price of $0.65 per share, subject to customary
adjustments.
The proceeds of the initial PNC Bank advances and the
refinancing of INBP's subordinated convertible debt with CD
Financial, LLC provided INBP with the capital necessary to repay
its defaulted notes payable in the aggregate original principal
amount of $7,000,000 held by Imperium Master Fund, LTD and three
other parties (the "Imperium Parties"), a $1,000,000 forbearance
fee under the Forbearance Agreement, dated as of October 14, 2012,
as well as interest and expenses owed to the Imperium Parties and
$805,000 representing an 11.5% premium owed on the original
maturity date of the defaulted notes payable, November 15,
2009.
E. Gerald Kay, Chief Executive Officer, stated, "We are
delighted to establish this relationship with PNC Bank which has
allowed us to strengthen our financial condition and facilitate the
growth of core business focused now in the manufacturing of tablets
and capsules of nutritional supplements and the sale and
distribution and sale of our branded liquid nutraceutical
products. The credit facility provides us with a flexible
economic tool to assist us in managing our cash flows and to help
us mitigate potential cash flow impediments to our planned
growth."
About Integrated BioPharma Inc. (INBP)
Integrated BioPharma, Inc. is engaged primarily in
manufacturing, distributing, marketing and sales of vitamins,
nutritional supplements and herbal products. Further information is
available at www.integratedbiopharma.com.
The Integrated BioPharma, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13521
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties, as well as assumptions, that,
if they never materialize or prove incorrect, could cause the
results of INBP to differ materially from those expressed or
implied by such forward-looking statements. Forward-looking
statements generally are identified by the words "expects,"
"anticipates," believes," intends," "estimates," "should," "would,"
"strategy," "plan" and similar expressions. All statements other
than statements of historical fact are statements that could be
deemed forward-looking statements. The risks, uncertainties and
assumptions include developments in the market and related products
and services and other risks and uncertainties described in the
section entitled "Risk Factors" in INBP's most recent Annual Report
on Form 10-K. Accordingly, INBP cannot give assurance that any of
the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what impact they will
have on the results of operations or financial condition of INBP.
CONTACT: Dina Masi, CFO
Integrated BioPharma, Inc
888-319-6962
investors@ibiopharma.com
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