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