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TAKE TWO INTERACTIVE SOFTWARE INC 8-K Report, Material Agreement (Feb 14, 2019)

Reports
Material Agreements·Financial Events
Filing Date
Filed February 14, 2019
Period End
February 8, 2019
Security
TTWO
In the record · 2016–202610-K1110-Q338-K116

TTWO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 116 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’18Feb ’18
  2. Material agreement8-K · Jun ’22Jun ’22
  3. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 14, 2019. Cited figures are marked; the original filing is the authoritative source.

Take-Two Interactive Software, Inc. (TTWO) announced on February 14, 2019, that it entered into a new unsecured Credit Agreement on February 8, 2019, replacing its previous credit facility.

This new agreement provides for a $200 milliona revolving credit facility with a five-year term, offering enhanced financial flexibility and an additional uncommitted capacity of up to $250 million for further expansion. This refinancing demonstrates the company's proactive approach to managing its capital structure and supports its ongoing growth initiatives.

The new credit facility features competitive interest rates tied to the company's leverage ratio and includes standard covenants and events of default, which are typical for such agreements. Investors should view this as a positive development, signaling continued confidence from lenders and providing resources for future investments or strategic opportunities.

02—Key points

Key Highlights

  1. Entered into a new unsecured five-year revolving credit facility totaling $200 million.
  2. Replaced the Company's existing Second Amended and Restated Credit Agreement dated October 17, 2011.
  3. The new facility includes sublimits for letters of credit ($25 million) and borrowings in foreign currencies ($25 million).
  4. Features an uncommitted incremental capacity of up to an additional $250 million.
  5. Obligations are guaranteed by certain domestic subsidiaries.
  6. Interest rates range from 0.125% to 0.750% above a base rate or 1.125% to 1.750% above LIBOR, based on the company's leverage ratio.
  7. Includes financial covenants such as maximum leverage ratio and minimum interest coverage ratio, along with other operational restrictions.

03—Questions

Frequently Asked Questions

  1. What is the main purpose of this new credit agreement?

    The new credit agreement provides Take-Two Interactive with a $200 million revolving credit facility for a five-year term, replacing its prior credit agreement. This is designed to offer greater financial flexibility, support ongoing operations, and potentially fund future growth initiatives or strategic opportunities.

  2. How does the new credit facility compare to the old one?

    The new facility is unsecured and provides $200 million in committed capacity over five years. It also includes an additional uncommitted capacity of up to $250 million. The previous agreement was an 'Second Amended and Restated Credit Agreement' dated October 17, 2011.

  3. What are the key financial terms of the new credit agreement?

    The credit facility will bear interest at a margin based on Take-Two's consolidated total net leverage ratio, ranging from 0.125% to 0.750% above a base rate or 1.125% to 1.750% above the LIBOR Rate. The agreement also includes financial covenants such as maximum leverage ratios and minimum interest coverage ratios.

  4. Does this new credit agreement require collateral?

    No, the filing explicitly states that the Credit Agreement is an 'unsecured Credit Agreement'. This means it is not backed by specific company assets as collateral.

04—Continue

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