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.
Frequently Asked Questions
The new credit facility provides for borrowings of up to $50,000,000.
The credit facility expires on August 23, 2006.
The credit agreement is collateralized by the company's accounts receivable, inventory, equipment, general intangibles, securities, and other personal property, including the capital stock of certain material domestic and foreign subsidiaries.
Yes, the credit agreement includes financial and other covenants. These generally limit or prohibit the company from declaring cash dividends, merging, selling or acquiring significant assets outside the ordinary course of business, creating liens, and incurring additional indebtedness.