Summary
Take-Two Interactive Software, Inc. filed an 8-K on February 13, 2008, reporting a material amendment to its credit agreement. This First Amendment, effective February 7, 2008, modifies the interest rate margins on its existing credit facility. The amendment is a result of the syndication of the credit agreement and adjusts the spread over the base rate and LIBOR rate, with these margins now being contingent upon the achievement of certain 30-day average liquidity levels. For investors, this filing indicates a change in the cost of borrowing for Take-Two. The new interest rate structure, which is tied to liquidity performance, suggests the company is actively managing its debt and financial obligations in coordination with its lenders. While the core credit agreement remains in effect, the specific terms of interest payments have been updated, which could impact the company's profitability and cash flow depending on its liquidity position and market interest rates.
Key Highlights
- 1Take-Two Interactive Software entered into a First Amendment to its Amended and Restated Credit Agreement on February 7, 2008.
- 2The amendment was made in connection with the syndication of the Credit Agreement.
- 3The interest rate margins on the credit facility have been adjusted.
- 4The new margins range from 2.00% to 2.50% above the base rate, or 3.25% to 3.75% above the LIBOR Rate.
- 5These margins are now subject to the Company achieving certain 30-day average liquidity levels.
- 6The credit facility continues with Wells Fargo Foothill, Inc. as arranger and administrative agent.
- 7The original Credit Agreement, dated November 16, 2007, remains in full force and effect except as amended.