Commitment Letter for $25 Million Revolving Line of Credit between Comerica Bank and Safeguard Delaware Inc. & Safeguard Scientifics Inc.
Summary
Comerica Bank - California has issued a commitment letter to Safeguard Delaware Inc. and Safeguard Scientifics Inc., offering a $25 million unsecured revolving line of credit. The facility has a 364-day term, with interest at the prime rate and specific financial covenants, including minimum cash requirements and reporting obligations. The agreement is subject to final loan documentation, and the bank may withdraw if there is a material adverse change in the borrowers' financial condition. All legal and documentation costs are to be paid by the borrowers, and the offer expires if not accepted by April 2, 2002.
EX-10.23 7 w58568ex10-23.txt COMMITMENT LETTER DATED MARCH 25, 2002 EXHIBIT 10.23 Mr. Christopher J. Davis Safeguard Delaware Inc. Safeguard Scientifics Inc., Delaware 800 The Safeguard Building 435 Devon Park Drive Wayne, PA 19087 March 25, 2002 CONFIDENTIAL Dear Mr. Davis: Comerica Bank - California is pleased to provide this commitment letter to Safeguard Delaware Inc. and Safeguard Scientifics Inc., Delaware, to make available the following credit facility. This commitment supersedes any previous communications with or correspondence from the Bank and is subject to execution of a definitive written agreement and documentation for the transaction described in this letter. The terms of the financing are as follows:
If the terms set forth above are acceptable to you, please so indicate by signing and returning the original of this letter to us. Upon return of this letter, the Bank will prepare drafts of definitive loan documents for your review. It is intended that all legal rights and obligations of the Bank and Borrower would be set forth in signed definitive loan documents acceptable to Bank and its counsel, which will contain covenants in addition to the ones contained above. On behalf of the Bank, we are delighted to make this credit facility available to Safeguard Delaware Inc. and Safeguard Scientifics Inc., Delaware, and look forward to a long and mutually rewarding relationship. Please don't hesitate to call if you have any questions, I can be reached at ###-###-####. Sincerely, /s/ Judith Erwin Senior Vice President/Director of Venture Fund Services Comerica Bank - California Accepted and Agreed to: SAFEGUARD DELAWARE INC. AND SAFEGUARD SCIENTIFICS INC., DELAWARE By: /s/ Tonya L Zweier Title: Vice President Date: March 25, 2001