Activision Blizzard gets $250 million replacement revolving facility

By Tali Rackner

Norfolk, Va., Dec. 14 – Activision Blizzard, Inc. entered into a third amendment to its credit agreement, replacing its $250 million existing revolving credit facility with a new revolver of the same amount, according to an 8-K filing with the Securities and Exchange Commission.

Up to $50 million of the facility may be used for letters of credit.

The facility matures on Oct. 11, 2020.

Borrowings bear interest at Libor plus 150 basis points to 225 bps based on the company’s consolidated total net debt ratio. The commitment fee on the unused portion is 25 bps.

Borrowings under the facility may be borrowed, repaid and re-borrowed and will be available for working capital and other general corporate purposes.

Financial covenants were amended to require Activision Blizzard to maintain a maximum consolidated total net debt ratio of 4 times, which will decrease to 3.5 times (a) after the sixth full fiscal quarter after the tranche A term loans are made; or (b) if the collateral suspension occurs prior to the date falling 18 months after the tranche A term loans are made, on the latter of (i) the last day of the fourth full fiscal quarter after the tranche A term loans are made; and (ii) the last day of the fiscal quarter in which the collateral suspension occurs.

Bank of America, NA is the administrative agent, collateral agent, swingline lender and letter-of-credit issuer, and is a joint lead arranger and bookrunner with Goldman Sachs Bank USA.

Activision Blizzard is a Santa Monica, Calif.-based interactive entertainment publishing company.

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