SS Republic
Coins secure credit for Odyssey Marine
By treasures | On 05/05/2010 | In Treasure Hunting / Recoveries
From Tampa Bay Business Journal
Odyssey Marine Exploration Inc. renewed it $5 million revolving credit facility with Fifth Third Bank.
The line of credit initially is secured by about 29,000 numismatic coins recovered by the company from the SS Republic shipwreck, a filing with the Securities and Exchange Commission said. The number of coins held as collateral will be reduced over the term by the amount of coins sold by Odyssey Marine, the filing said.
Odyssey Marine, a Tampa company that explores and recovers deep-ocean shipwrecks worldwide, said it would use the credit line to fund ongoing operations.
Odyssey Marine initially received a two-year, $5 million credit facility from Fifth Third Bank in February 2008. A 90-day extension was granted until May 7, 2010, the SEC filing said.
The renewed credit facility has a floating interest rate equal to the prime rate plus 1.5 percent, requires monthly payments of interest only and is due in full April 23, 2011, the filing said.
The company is required to pay the bank an unused line fee equal to one-half percent per year on the unused portion of the credit line.
The coins used as collateral will be held by a custodian for the security of the bank, and the borrowing base will be equal to 40 percent of the eligible coin inventory valued on a rolling 12-month wholesale average value, the filing said.
