SiliconBeat

Kana Software today filed news of an amendment to its loan agreement with Bridge Bank to “require” the Menlo Park maker of customer service tools to borrow $1 million from Agility Capital, which Kana did as of July 30.

The loan bears an interest rate of 15 percent Read the rest of this entry »

Socket Mobile, which reported June 30 to its lender, Silicon Valley Bank, that it was out of compliance for a second month in a row with covenants of its loan, announced today the second amendment to the agreement since it was first drawn up Dec. 31.

The most recent changes included an agreement by the bank to Read the rest of this entry »

For the seventh time in just over two year, Silicon Graphics has modified the terms of a credit agreement it has that is administered by Morgan Stanley. The latest amendment made it possible for Silicon Graphics to defer interest payments due over the next two years by adding their amount to the principal amount, unless certain levels of consolidated earnings before deductions for interest, taxes, depreciation and amortization (EBITDA) are reached.

Another new covenant was added regarded minimum required levels of EBITDA, which grow over the next two years. As of March 27, the company must achieve $1 million of EBITDA; $5 million, by June 26; and $10 million by Sept. 25 and fiscal quarter afterwards.

The latest amendment also tightened financial reporting requirements Read the rest of this entry »

Shareholders of Credence Systems, the Milpitas maker of semiconductor design-and-testing gear, and its competitor LTX of Norwood, Mass., are set to vote Thursday on the proposed merger of the two companies.

On Monday, holders of Credence’s 3.5% Convertible Senior Subordinated Notes due 2010 threw the company a curveball after they sent Credence a letter saying that the proposed merger would “constitute a change of control” requiring Credence to “offer to repurchase all of the outstanding Notes (due in 2010) at 100% of the principal amount thereof plus accrued and unpaid interest,” according to an SEC filing Tuesday.

Credence and LTX are now “reviewing and considering the positions taken in the letter” but assured investors that the $156 million it holds in cash and cash equivalents, combined with $71.5 million held by LTX would be sufficient to meet its obligation, if the merger is found to be a change of control.