Contact Information: Contact: Steve Workman Chief Financial Officer 408-548-1000 Investor Relations 408-542-5050 investor.relations@Finisar.com
Finisar Corporation Increases Line of Credit With Silicon Valley Bank to $70.5 Million
| Source: FINISAR CORPORATION
SUNNYVALE, CA--(Marketwire - March 17, 2008) - Finisar Corporation (NASDAQ : FNSR ), a
technology leader in gigabit fiber optic solutions for high-speed data
networks, today announced that it had entered into an agreement with
Silicon Valley Bank, the premier commercial bank for technology and life
science companies and member of SVB Financial Group (NASDAQ : SIVB ), to
increase its available line of credit to $70.5 million.
BACKGROUND
Finisar has maintained a revolving line of credit totaling $35 million
since October 2004 with Silicon Valley Bank consisting of a $20 million
non-recourse receivables purchase agreement and a $15 million letter of
credit reimbursement agreement to cover the issuance of standby letters of
credit. As of March 14, 2008, the Company had utilized approximately $1
million under the non-recourse receivables purchase agreement and had
letters of credit totaling approximately $10.4 million under the letter of
credit reimbursement agreement.
In the most recent quarter ended January 27, 2008, the Company reported
cash from operations of $14.2 million. Total cash, equivalents and
long-term investments which can be readily converted to cash totaled $122.4
million at the end of the quarter.
NEW LINE OF CREDIT
Under the new credit arrangement with Silicon Valley Bank, Finisar will
have access to as much as $70.5 million consisting of a $50 million secured
line of credit in addition to $10 million under a non-recourse receivables
purchase agreement and $10.5 million under a letter of credit reimbursement
agreement. The new credit arrangement may be used for general corporate
purposes including a reduction in the Company's outstanding convertible
notes.
ABOUT SILICON VALLEY BANK
Silicon Valley Bank is the premier commercial bank for emerging, growth and
mature companies in the technology, life science, private equity and
premium wine industries. SVB provides a comprehensive suite of financing
solutions, treasury management, corporate investment and international
banking services to its clients worldwide. Through its focus on specialized
markets and extensive knowledge of the people and business issues driving
them, Silicon Valley Bank provides a level of service and partnership that
measurably impacts its clients' success. Founded in 1983 and headquartered
in Santa Clara, Calif., the company serves clients around the world through
27 U.S. offices and three international operations. Silicon Valley Bank is
a member of global financial services firm SVB Financial Group, with SVB
Analytics, SVB Capital, SVB Global and SVB Private Client Services. More
information on the company can be found at www.svb.com.
ABOUT FINISAR
Finisar Corporation (NASDAQ : FNSR ) is a global technology leader for fiber
optic components and subsystems and network test and monitoring systems.
These products enable high-speed voice, video and data communications for
networking, storage and wireless applications over Local Area Networks
(LANs), Storage Area Networks (SANs), and Metropolitan Area Networks (MANs)
using Ethernet, Fibre Channel, IP, SAS, SATA and SONET/SDH protocols. The
Company is headquartered in Sunnyvale, California, USA. More information
can be found at www.finisar.com.