Medtox obtains $10 million credit agreement from Wells Fargo

New York, Dec. 6 - Medtox Scientific, Inc. obtained a $10 million credit facility from Wells Fargo Bank, NA.

The facility is made up of an $8 million revolving credit facility with interest at Libor plus 190 basis points and a $2 million note for the purchase of capital equipment at a fixed rate of Treasuries plus 225 basis points for one, two, three or four years, according to an 8-K filing with the Securities and Exchange Commission.

In addition, there is a 12.5 basis point unused fee.

The revolver is due on Nov. 1, 2007.

Under the facility's terms, Medtox is required to comply with monthly covenants for a minimum current ratio, a minimum level of tangible net worth and a maximum level of total liabilities to tangible net worth. The facility also sets a minimum annual debt service coverage ratio.

Medtox's new facility replaces its previous agreement with Wells Fargo Business Credit, Inc. which consisted of and $8 million revolver at Prime rate plus 100 basis points and a $1.5 million capital equipment note at Prime rate plus 75 basis points.

Medtox, which has headquarters in St. Paul, Minn., is a provider of specialized laboratory testing services and on-site/point-of-collection devices.

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