Take-Two Interactive closes $500 million five-year revolver

By Marisa Wong

Los Angeles, May 26 – Take-Two Interactive Software, Inc. entered into an unsecured credit agreement on Monday for a $500 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement replaces the company’s existing credit agreement dated Feb. 8, 2019, which was paid off in full and terminated.

The new credit facility includes a $100 million sublimit for the issuance of letters of credit and a $100 million sublimit for borrowings and letters of credit denominated in pounds sterling, euros and Canadian dollars.

In addition, the credit agreement contains uncommitted incremental capacity permitting the incurrence of up to an additional amount not to exceed the greater of $250 million and 35% of the company’s consolidated adjusted EBITDA.

The revolver matures five years from the closing date but includes a one-year extension option that may be exercised up to two times.

The revolver will bear interest at SOFR plus 100 basis points to 162.5 bps, depending on the company’s credit rating.

The credit agreement includes, among other covenants, a maximum leverage ratio covenant.

JPMorgan Chase Bank, NA is administrative agent for the lenders. JPMorgan Chase Bank, Wells Fargo Bank, NA, BOFA Securities, Inc. and BNP Paribas are joint lead arrangers and joint bookrunners, and Wells Fargo is syndication agent.

Take-Two closed the new revolver on the same day it completed its acquisition of Zynga Inc.

Take-Two is a New York-based developer of interactive and mobile entertainment.

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