Aehr Test Systems, a worldwide supplier of semiconductor test and burn-in equipment, has completed a convertible debt financing with strategic investor QVT Financial LP consisting of a $4.1 million convertible note and a $2 million line of credit.

The $4.1 million convertible debt is a secured and senior loan with a two-year term and is convertible into common shares of the company at a conversion price of $2.65 per common share. Interest will be paid in cash quarterly at an annual rate of 9%.

The $2 million line of credit is also a secured and senior loan with a term of two years. The annual interest rate on any outstanding advance is 5% and interest is paid quarterly. At the discretion of Aehr Test, this line of credit can be converted into convertible debt with the same terms as described in the preceding paragraph. This new line of credit will replace the existing credit line with Silicon Valley Bank, which will be terminated as a result of this debt financing.

Headquartered in Fremont, California, Aehr Test Systems is a worldwide provider of test systems for burning-in and testing logic and memory integrated circuits and has an installed base of more than 2,500 systems worldwide. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets are driving additional test requirements, capacity needs and opportunities for Aehr Test products in package and wafer level test.