NEW YORK, July 10 - Paradigm Genetics will pocket $7.5 million as part of a debt-financing deal with Silicon Valley Bank of Santa Clara, Calif., Paradigm said today.
Paradigm said the financing includes a $5 million, four-year secured-term loan and a $2.5 million revolving line of credit. The firm added that the loan is at a "significantly lower [interest] rate" than its existing loan.
Paradigm, based in Research Triangle Park, NC, will use around $3 million of the term loan to pay off its current equipment financing loan with Transamerica Technology Finance, which was to mature in June 2004. The company said it will use the balance of the cash for "general corporate purposes."