Corsair Gaming, a global provider and innovator of high-performance gear for gamers and content creators, completed the successful refinancing of its 2017 credit facilities with borrowings under a new $350 million credit facility, consisting of a $250 million term loan and $100 million revolving line-of-credit, both maturing in August 2026.
The new term loan is provided by Bank of America and bears interest at a rate equal to a margin plus either a base rate or LIBOR rate. Based on Corsair’s net leverage ratio at the time of the new borrowing, the rate for a LIBOR borrowing under the new term loan is LIBOR plus 1.25%, compared to the retired term loan which carried a combined interest rate of 4.75% for a LIBOR borrowing, made up of LIBOR, with a 1.00% floor, plus a margin of 3.75%. Corsair repaid the full $273.9 million outstanding under its 2017 credit facility using proceeds from this 2021 credit facility and cash-on-hand. The maturity date of the retired term loan was August, 2024 and of the retired revolving line-of-credit was August 2022.
“I am very pleased that we have successfully completed the refinancing, which we estimate will reduce our cash interest expense at current borrowing levels and rates by over $2 million per quarter,” Ronald van Veen, vice president of Finance at Corsair, said.
“We continue to focus on strengthening our balance sheet and increasing our profitability and the increase in our revolver from $50 million under the 2017 credit facility to $100 million under the 2021 facility will help provide additional growth capital for the future,” Michael G. Potter, CFO of Corsair, said.