Turtle Beach amends agreements to reduce interest, lift availability

By Sarah Lizee

Olympia, Wash., March 6 – Turtle Beach Corp. amended its debt agreements with lenders Bank of America, Crystal Financial, LLC and Stripes Group to reduce interest costs, expand availability and reduce covenants, according to a press release.

The amendments reduced the interest rate and provided greater availability of its revolving credit facility with Bank of America. Also, interest rates were reduced on its term loans with Bank of America and Crystal and its subordinated debt with Stripes.

Turtle Beach now has the ability to use funds from the term loan to reduce the subordinated debt, and the EBITDA covenant on the term loans was eliminated.

Additionally, the loans were extended to 2023.

"After a competitive process to refinance our loans that resulted in at least eight indications of interest, we are very pleased as we have significantly improved the terms of our existing loans with BofA, Crystal and Stripes," Juergen Stark, chief executive officer of Turtle Beach, said in the release.

"The new agreements are expected to give us more flexibility to run our business and pursue various strategies," John Hanson, chief financial officer of Turtle Beach, added.

"The net effect of the changes is expected to be interest savings of at least $3.5 million over the next five years."

Turtle Beach is a San Diego-based sound card and headset manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.