Loan & DebtMay 4, 2026, 04:53 PM
Turtle Beach Secures $85M Term Loan, $80M ABL Facility
AI Summary
Turtle Beach Corporation has restructured its credit facilities, securing an $85 million Term Loan Facility and an up to $80 million Revolving Credit Facility, both maturing on April 30, 2029. These new facilities replace the company's previous $150 million credit agreement, providing enhanced financial flexibility. The proceeds will be used to refinance existing indebtedness, for general corporate purposes, and to accelerate the company's share repurchase program, which has approximately $56 million remaining under its $75 million authorization.
Key Highlights
- Secured a new $85 million Term Loan Facility from Blue Torch Finance, LLC.
- Entered into a new Revolving Credit Facility (ABL) of up to $80 million with Bank of America, N.A.
- Both facilities mature on April 30, 2029, replacing the prior $150 million credit agreement.
- Term Loan interest rate is SOFR plus 6.75% to 7.50% or base rate plus 5.75% to 6.50%, based on leverage.
- ABL Facility interest rate is SOFR, US Base Rate, SONIA, or EURIBOR plus 0.50% to 2.00% margin.
- Proceeds will refinance existing debt, fund general corporate purposes, and support share repurchases.
- The new structure is designed to enhance capital return flexibility for the $75 million share repurchase program.
- Approximately $56 million remains under the existing share repurchase authorization.