Turtle Beach Replaces Sub-Debt with Lower Cost Financing
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.