Summary
Take-Two Interactive Software, Inc. (TTWO) announced on August 21, 2014, that it entered into a Third Amendment to its Second Amended and Restated Credit Agreement, effective August 18, 2014. This amendment primarily focuses on enhancing the terms of the Company's revolving credit facility, which has a principal amount of $100,000,000 that can be increased to $140,000,000. The modifications are designed to provide more favorable borrowing conditions and financial flexibility for the Company. The key changes include a reduction in interest rates and associated fees, an increase in borrowing capacity under the U.K. subsidiary's subfacility, and a revised maturity date for the credit facility. These adjustments are indicative of the Company's improving financial standing and its ability to secure more advantageous debt terms, which could positively impact its cost of capital and overall financial health.
Key Highlights
- 1Effective August 18, 2014, Take-Two entered into a Third Amendment to its Second Amended and Restated Credit Agreement.
- 2The amendment lowers interest rate margins by 100 basis points, reducing the prime base rate margin to 0.50%-1.00% and the LIBOR rate margin to 1.50%-2.00%.
- 3The unused line fee has been reduced by 12.5 basis points, now ranging from 0.25% to 0.375%.
- 4The letter of credit fee has been decreased by 50 basis points to 1.50% per annum.
- 5The U.K. subfacility's borrowing amount has been increased, subject to certain limitations.
- 6The capacity of the Letter of Credit (LC) Subfacility has been decreased from $25,000,000 to $5,000,000.
- 7The maturity date of the Credit Facility has been extended from October 17, 2016, to August 18, 2019.