Thursday, December 04, 2008

Overland Storage secures $9 million in Financing

Overland Storage, Inc. (Nasdaq: OVRL) today announced that it had closed an accounts receivable financing transaction with Marquette Commercial Finance. Under the terms of the agreement, Marquette may finance up to $9 million of the company’s domestic accounts receivable to provide the company with accelerated liquidity. The term of the agreement is two years with annual renewals thereafter.

“This financing agreement with Marquette will allow us to continue our recovery and execute our strategy,” stated Vern LoForti, president and chief executive officer of Overland Storage. “I remain encouraged by the strength and commitment of the Overland team, and by the support of our channel partners who continue to stand by us. We are focused on harvesting our recent investment in the Snap Server business and in delivering new solutions that can leverage the variety of platforms represented by the Overland family of data protection appliances.

“We are grateful to the team at FTI Capital Advisors, LLC who assisted us in our search and, in spite of a very challenging financing environment, worked tirelessly to provide us with a number of options, including Marquette. Likewise, we are excited to be working with the team at Marquette, who has been extremely responsive and professional, and has the backing of a very successful and well capitalized parent company,” concluded LoForti.

Overland Storage provides affordable end-to-end data protection solutions that are engineered to store smarter, protect faster and extend anywhere — across networked storage, media types, and multi-site environments. Overland Storage products include award-winning NEO SERIES® and ARCvault® tape libraries, REO SERIES® disk-based backup and recovery appliances with VTL capabilities, Snap Server® NAS appliances, and ULTAMUS® RAID high-performance, high-density storage. Overland sells its products through leading OEMs, commercial distributors, storage integrators and value-added resellers.