Comerica, Wells Amend Multimedia Games Credit Agreement
On September 21, 2012, Multimedia Games, Inc., a Delaware corporation, and MGAM Systems, Inc., a Delaware corporation, direct, wholly owned subsidiaries of Multimedia Games Holding Company, Inc. amended its credit agreement with Comerica Bank as administrative agent and lead arranger, and Wells Fargo Bank as syndication agent.
According to the company’s 8-K filing, the amendment provides that (i) letters of credit under the credit agreement shall be discretionary (previously committed); (ii) the limitation on debt to finance acquisitions and capital asset purchases is increased to $1 million (previously $500,000); (iii) limitations on capital expenditures is increased to $60 million, with no carryover (previously $40 million with a carryover for any unused amount into the succeeding year); and (iv) the applicable margin grid is amended for a margin reduction of 25 basis points at both levels.
In addition, certain provisions of the Amended and Restated Security Agreement, by and among borrowers and Comerica, dated as of August 3, 2011, are amended in order to provide for certain provisions required pursuant to Nevada gaming laws and regulations.
Previously on abfjournal.com: