Martek gets new $85 million revolver

By Sara Rosenberg

New York, Jan. 27 - Martek Biosciences Corp. closed on a new $85 million revolving credit facility due Feb. 1, 2007. Manufacturing and Traders Trust Co. is the administrative agent and sole bookrunner, Bank of America is syndication agent and SunTrust Bank is documentation agent.

Security is inventory and receivables, and the company has agreed not to encumber its other assets, except for certain permitted liens, according to a company news release.

Proceeds from the loan, which replaces the company's previous $10 million revolver that was set to mature in February, will be used to fund the expansion of Martek's manufacturing capacity to meet increased demand for its DHA and ARA oils and for general corporate purposes.

"The increase in the credit facility reflects our growing financial strength and is an important element of our financial plan to support the ongoing expansion of our manufacturing facilities," said Henry "Pete" Linsert Jr., chairman and chief executive officer, in the release.

Martek is a Columbia, Md., developer, manufacturer and seller of products from microalgae.

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