Verenium Corp., a San Diego biotech focused on the commercialization of high performance enzymes, said it obtained a $10 million, two-year revolving line of credit from Comerica Bank.
The credit line will allow Verenium to borrow up to $8.4 million against eligible receivables and cover an existing $1.6 million letter of credit commitment to Verenium’s landlord, the company said.
The latest financing frees up $1.6 million in restricted cash that previously secured the letter of credit.
The latest credit facility is secured by all of Verenium’s assets including its intellectual property, and bears an interest rate set at the daily Libor rate plus 4.75 percent, the company said.
The proceeds from the facility will be used for general working purposes.
CFO Jeffrey Black said the latest credit line is a prudent step that provides low-cost capital that will enable the business to move forward.