Capstone Turbine Corp. amended a business financing agreement with Bridge Bank to increase the line of credit to up to $15 million from $12 million, according to a June 11 filing.
The amended agreement also reduced the per annum interest from prime rate plus 1.50% to 1%, the facility fee from 0.625% to 0.5% and cash collateral held at Bridge Bank from 42% to 40%. It also extended the maturity date of the company's two secured credit facilities with Bridge Bank from June 2, 2019, to June 2, 2021.
Bridge Bank is a division of Western Alliance Bank.
Separately, Capstone Turbine amended its accounts receivable assignment agreement and promissory note with Turbine International LLC.
The amended assignment agreement gives Turbine International the right, title and interest to receivables owed to Capstone Turbine by its former Russian distributor BPC Engineering upon payment of the remaining $1.5 million by Sept. 20, 2019.
The amended note, meanwhile, provides for the payment by Turbine International of $3.8 million to Capstone Turbine over a three-year period in 13 equal quarterly installments starting Dec. 21, 2019.
