May, 2002 : Interliant Obtains $7.5 Million Loan for Operations


📅 - Managed infrastructure services firm Interliant, Inc. (interliant.com) said today it has secured a working loan of $7.5 million from Silicon Valley Bank, a California chartered bank with principal offices in Santa Clara, California.

The underlying loan agreement has a term of one year and provides for interest at prime plus two percent on amounts borrowed. The loan is collateralized by a first-priority security interest in the company's personal property. As part of this transaction, Interliant also issued to Silicon Valley Bank a warrant to purchase 1.2 million shares of its common stock at $0.30 per share. The warrant expires five years from the date of issuance.
The loan will be used to shore up the Web hosting company's account receivables. The funding transaction, closed on May 14, 2002. Based on current receivable balances, Interliant expects that at least $4 million of the loan will be available immediately and, when drawn upon, the funds will be used for operating and working capital needs.

Reads: 1593 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/int051502.cfm
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