Turtle Beach announced that it has entered into an amendment to its loan agreement with Bank of America signed March 31, 2014 that will allow the company to repay approximately $7.7 million of existing subordinated debt.

The subordinated debt had an annual interest rate of 10% through December 31, 2014 and 20% per annum thereafter. The interest rate on the $7.7 million loan is LIBOR plus 5% while the interest rate on the remaining portion of the company’s credit facility remains at LIBOR plus 2.5%.

The transaction is expected to generate approximately $0.4 million in interest savings annually compared with 2014 based on the current LIBOR rate.

San Diego, CA-based Turtle Beach designs audio products for consumer, commercial and healthcare markets.