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8-K - ZCO LIQUIDATING Corp | v210950_8k.htm |
EX-99.2 - ZCO LIQUIDATING Corp | v210950_ex99-2.htm |
Exhibit
99.1
OCZ
TECHNOLOGY SIGNS $25 MILLION LOAN AGREEMENT WITH SILICON VALLEY
BANK
SAN JOSE,
Calif., Feb. 10, 2011 -- OCZ Technology Group, Inc. (Nasdaq: OCZ), a
leading provider of high-performance solid-state drives (SSDs) for computing
devices and systems, today announced it has signed an agreement with Silicon
Valley Bank (SVB) for asset-based financing of up to $25 million. This new
agreement, which is set to expire in February 2012, expands the $17.5 million
debt capability available under the prior joint factoring arrangements with SVB
and Faunus Group International, Inc.
"We are pleased to extend our
relationship with Silicon Valley Bank as this $25 million credit line provides
increased financing capability at much lower interest rates than our previous
factoring arrangements." said Arthur Knapp, OCZ's chief financial officer. "This
SVB facility combined with our $22 million equity funding in November 2010 helps
finance the working capital required for the increasing demand of our solid
state drive product lines, particularly those designed specifically for
enterprise applications.”
The new
agreement contains financial covenants for quarterly EBITDA as defined in the
agreement and a monthly quick-ratio computation. Interest rates range between
prime +1.5% to prime +2.5%. There are also provisions for letter of credit
sub-limits and various operational, reporting, negative and affirmative
covenants with which OCZ must comply.
About
OCZ Technology Group, Inc.
Founded
in 2002, San Jose, CA-based OCZ Technology Group, Inc. (OCZ), is a leader in the
design, manufacturing, and distribution of high performance and reliable
Solid-State Drives (SSDs) and premium computer components. OCZ has built on its
expertise in high-speed memory to become a leader in the SSD market, a
technology that competes with traditional rotating magnetic hard disk drives
(HDDs). SSDs are faster, more reliable, generate less heat and use significantly
less power than the HDDs used in the majority of computers today. In addition to
SSD technology, OCZ also offers high performance components for computing
devices and systems, including enterprise-class power management products as
well as leading-edge computer gaming solutions. For more information, please
visit: www.ocztechnology.com.
Forward-Looking
Statements
Certain
statements in this press release relate to future events and expectations and as
such constitute forward-looking statements involving known and unknown factors
that may cause actual results of OCZ to be different from those expressed or
implied in the forward-looking statements. In this context, words such as
"will," "would," "expect," "anticipate," "should" or other similar words and
phrases often identify forward-looking statements made on behalf of OCZ. It is
important to note that actual results of OCZ may differ materially from those
described or implied in such forward-looking statements based on a number of
factors and uncertainties, including, but not limited to, market acceptance of
OCZ's products and OCZ's ability to continually develop enhanced products;
adverse changes both in the general macro-economic environment as well as in the
industries OCZ serves, including computer manufacturing, traditional and online
retailers, information storage, internet search and content providers and
computer system integrators; OCZ's ability to efficiently manage material and
inventory, including integrated circuit chip costs and freight costs; and OCZ's
ability to generate cash from operations, secure external funding for its
operations and manage its liquidity needs. Other general economic, business and
financing conditions and factors are described in more detail in "Item 1A --
Risk Factors" in Part II in OCZ's Quarterly Report on Form 10-Q filed with the
SEC on January 14, 2010. The filing is available both at www.sec.gov as well as
via OCZ's website at www.ocztechnology.com. OCZ does not undertake to update its
forward-looking statements.
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Investor
Contact:
OCZ
Technology Group, Inc.
Bonnie
Mott, Investor Relations Manager
408-440-3428
bmott@ocztechnology.com
Abhi
Kanitkar
ICR,
Inc.
646-277-1237
abhi.kanitkar@icrinc.com
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