Summary
Take-Two Interactive Software, Inc. (TTWO) announced on August 24, 2005, the execution of a new credit agreement with JPMorgan Chase Bank, N.A., replacing a previous facility with Bank of America. This new agreement provides a revolving line of credit of up to $50,000,000, expiring on August 23, 2006. The credit facility is secured by a broad range of the company's assets, including accounts receivable, inventory, and equipment, as well as the capital stock of certain subsidiaries.
Key Highlights
- 1New $50 million credit facility established with JPMorgan Chase Bank, N.A.
- 2Replaces previous credit line with Bank of America.
- 3Facility available through August 23, 2006.
- 4Interest rates vary based on the company's consolidated leverage ratio, ranging from prime rate + 0.25%-0.75% or Eurodollar rate + 1.25%-1.75%.
- 5A commitment fee of 0.25% on the unused portion of the loan balance is applicable.
- 6The credit agreement imposes several financial and operational covenants, including restrictions on dividends, mergers, asset sales, and incurring additional debt.
- 7The credit facility is secured by substantially all of the company's assets and stock of certain subsidiaries.