The new credit structure consists of a revolving asset-based lending ("ABL") facility of up to $80 million provided by Bank of America, N.A., and an $85 million term loan facility provided by Blue Torch Capital LP. Together, these facilities replace the Company's prior $150 million credit agreement and provide the Company with increased operational and capital allocation flexibility.
"This restructured credit facility reflects our ongoing commitment to disciplined capital allocation and our confidence in the long-term value of Turtle Beach," said Cris Keirn, Chief Executive Officer of Turtle Beach Corporation.
"We believe this new structure better aligns with our capital allocation priorities for the period ahead, specifically, the ability to be a consistent, systematic buyer of our own shares when we believe our stock is priced below intrinsic value," said Will Wyatt, Chairman of the Turtle Beach Board of Directors. "With approximately $56 million remaining under our existing $75 million authorization and a gaming market we expect to inflect meaningfully over the next couple of years, we are positioning Turtle Beach to capitalize on what we see as a compelling opportunity to create value for shareholders."
Under the new structure the ABL facility provides up to $80 million of revolving borrowing capacity, with borrowings bearing interest at SOFR plus 150 to 200 basis points based on availability levels, and a maturity of 3 years. The term loan provides $85 million of committed term debt, with borrowings bearing interest at SOFR plus 675 to 750 basis points and a maturity of three years. The ...
