Multimedia Games amends loan terms via Comerica Bank, lowers rates

By Susanna Moon

Chicago, Sept. 25 - Multimedia Games, Inc. amended its credit agreement with Comerica Bank as administrative agent and lead arranger, reducing spreads by 25 basis points, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the revolver and letter-of-credit fees was reduced to Libor plus 200 bps or 250 bps, based on leverage. Interest on the term loan is Libor plus 275 bps or 325 bps. The facility fee is 50 bps.

The company and MGAM Systems, Inc., wholly owned subsidiaries of Multimedia Games Holding Co., Inc., entered into an amended agreement on Friday. Wells Fargo Bank, NA is syndication agent.

The amendment also provides that

• Letters of credit under the agreement will be discretionary rather than committed;

• Limitation on debt to finance acquisitions and capital asset purchases is now $1 million, up from $500,000; and

• Limitation on capital expenditures is $60 million, with no carryover, changed from $40 million with a carryover for any unused amount into the succeeding year.

Multimedia Games is an Austin, Texas-based gaming technology developer and distributor.

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