Alliance Distributors Signs Credit Facility With PNC Bank
Monday, June 04, 2012
Alliance Distributors Holding Inc. announced that it has entered into a three-year credit facility with PNC Bank that consists of a $15 million revolving credit line and a $1.5 million term loan.
Interest on outstanding borrowings is payable at either the bank's prime rate (prime plus 0.25% on the term loan) or at 2.5% (3.0% on the term loan) above the Eurodollar rate. Borrowings under the revolving credit line are based on eligible inventory and receivables. The term loan, subject to certain early repayment triggers after June 2013, is payable ratably over 36 months. The loan facility is secured by a first lien on substantially all of the company's assets, and is subject to compliance with certain financial covenants. It replaces the company's prior loan facility with Rosenthal & Rosenthal.
Jay Gelman, president and CEO of Alliance, said, "We are pleased to announce our banking relationship with PNC, a leading national financial institution. The new credit facility gives us cost savings in interest and fees and the flexibility to make further investments in our distribution and content businesses.
"We take this opportunity to thank Rosenthal & Rosenthal for the outstanding relationship we've had with them for more than nine years. Their support throughout that period was a major factor in our growth as a company."
Alliance Distributors Holding Inc., which does business as Alliance Distributors, is a full-service wholesale videogame distributor, specializing in gaming products and accessories for all key manufacturers and third party publishers.
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