East West Bank Provides NTN Buzztime Revolver
NTN Buzztime closed a revolver with East West Bank consisting of up to $7.5 million of borrowing capacity with a $2.5 million accordion feature to provide up to $10 million in total borrowing capacity.
Proceeds will be used to pay down existing indebtedness, fund strategic growth initiatives and provide for general working capital. The company will maintain its existing lender agreement.
The East West Bank revolver agreement expires in April 2018 and carries an interest rate, at the company’s option, of LIBOR plus 400 basis points or Prime plus 125 basis points.
“Adding the institutional backing of East West Bank while maintaining our relationship with our current equipment lender improves our capital structure and expands our liquidity,” said Allen Wolff, NTN Buzztime CFO. “Our top priority in 2015 is to continue rolling out the BEOND platform. Now, our increased financial flexibility can further this effort and fund working capital. Additionally, our new facility’s interest rate is more than 400 basis points lower. This cost reduction combined with the interest-only revolving structure is expected to free up significant cash for the next few years.”
NTN Buzztime is a bar and restaurant social entertainment and integrated marketing platform.