SOURCE: BASi (Bioanalytical Systems, Inc.)

BASi (Bioanalytical Systems, Inc.)

December 02, 2010 14:55 ET

Bioanalytical Systems, Inc. Announces Amendment to Loan Agreement

WEST LAFAYETTE, IN--(Marketwire - December 2, 2010) - Bioanalytical Systems, Inc. (NASDAQ: BASI) (the "Company") today reported that it has negotiated an amendment to its loan agreement with Regions Bank ("Regions"). 

On November 29, 2010, Regions agreed to accept a $500,000 principal payment on a note with $1.1 million of principal maturing on December 18, 2010 and a $500,000 principal payment on another note with $1.3 million of principal maturing on February 11, 2011. The unpaid principal on the notes will be incorporated into a replacement note maturing in November, 2012. The replacement note will bear interest at LIBOR plus 300 basis points (minimum of 4.5%) with monthly principal amortization. Regions also agreed to amend the loan covenants on all of the Company's debt with Regions. The amendment removes limitations on the Company's purchase of fixed assets, so long as the Company complies with the revised Fixed Charge Coverage and Debt-to-Equity ratio requirements. 

About Bioanalytical Systems, Inc.

BASi is a pharmaceutical development company providing contract research services and monitoring instruments to the world's leading drug development companies and medical research organizations. The company focuses on developing innovative services and products that increase efficiency and reduce the cost of taking a new drug to market. Visit www.BASInc.com for more about BASi.

This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, changes in the market and demand for our products and services, the development, marketing and sales of products and services, changes in technology, industry standards and regulatory standards, and various market and operating risks detailed in the company's filings with the Securities and Exchange Commission.