Accentia increases total overadvance to $7.5 million

By Elaine Rigoli

Tampa, Fla., July 19 - Accentia Biopharmaceuticals, Inc. said it amended its credit facility with Laurus Master Fund, Ltd. under which the amount of the total overadvance by Laurus to Accentia under the facility was increased to $7.5 million.

The purpose of the overadvance increase was to obtain new funding in the approximate amount of $5 million (before transaction expenses) to refinance the debt of Teamm Pharmaceuticals, Inc., a wholly owned subsidiary of Accentia, to Harbinger Mezzanine Partners, LP.

Accentia's credit facility with Laurus consists of two components: a term loan in the principal amount of $9.4 million and a revolving loan in the maximum principal amount up to $5 million.

In general, under the revolving loan, Accentia has the right to borrow up to the sum of 85% of all of the eligible accounts receivable and 50% of eligible inventory.

However, Accentia may also request that Laurus lend amounts in excess of the maximum borrowing availability that would otherwise apply under the revolving loan.

On Dec. 29, 2005, Laurus made such an overadvance in the amount of $2.5 million, and that overadvance became due on July 2. The new overadvance agreement provided for the repayment of the prior $2.5 million overadvance and the extension of a new overadvance in the amount of $7.5 million resulting in new funds of $5 million to Accentia before taking into account a $175,000 servicing fee payable to Laurus and before taking into account transaction expenses.

Accentia is a biopharmaceutical company located in Tampa, Fla.

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