Take-Two amends, extends agreement via $100 million five-year revolver

By Susanna Moon

Chicago, Oct. 17 - Take-Two Interactive Software, Inc. amended its credit agreement Monday with Wells Fargo Capital Finance, Inc. as arranger and administrative agent, extending the revolving credit facility through Oct. 17, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The total amount of the facility is $100 million, and it may be increased by up to $40 million for a total capacity of $140 million.

Interest on the loans will be Libor plus 250 basis points to 300 bps, based on the company's 30-day average liquidity.

Proceeds will be used to fund working capital, letters of credit and for other general corporate purposes.

The U.S. borrowing base consists of the sum of 85% of U.S. eligible accounts plus the lesser of 65% of U.S. eligible inventory and $25 million, plus $50 million, less reserves.

There is a $25 million subfacility for letters of credit and a subfacility available to the company's indirect subsidiary, Take-Two GB Ltd., at the lesser of $25 million and the U.K. borrowing base. The U.K. borrowing base consists of the sum of 85% of U.K. eligible accounts plus the lesser of 50% of U.K. eligible inventory and $4 million, less reserves.

The U.S. borrowings under the agreement are guaranteed by each of the company's direct or indirect domestic subsidiaries and secured by liens on substantially all of the company's assets. The borrowings under the U.K. subfacility are guaranteed by each of the company's direct or indirect U.K. subsidiaries other than Take-Two GB Ltd. and its Swiss subsidiary and secured by liens on substantially all assets of such U.K. and Swiss subsidiaries.

Before the amendment, the company's credit facility was undrawn and set to expire on July 3, 2012.

Take-Two is New York-based interactive entertainment software company.

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