Aquilini GameCo enters into C$20 million senior secured loan

By Sarah Lizee

Olympia, Wash., Aug. 8 – Enthusiast Gaming Holdings Inc. said Aquilini GameCo Inc. got a C$20 million senior secured loan from an arm’s length third party.

The loan comprises two advances, including an initial advance in an amount of up to C$3 million at the request of Aquilini and a further advance in an amount equal to the remaining difference at the request of Aquilini, subject to completion of certain transactions, according to a press release.

The loan expires 24 months from the date on which the transactions are completed.

Interest will accrue at a rate per annum that is equal to the prime rate plus 505 basis points calculated on the aggregate amount of the facility, compounded monthly, whether or not the conditions precedent are satisfied or the facility is advanced.

Interest, and any such equivalent amount by way of standby fee, will be capitalized during the first 12 months of the term. Commencing in August 2020, interest will be payable in cash on the last business day of each and every month until the maturity date.

The facility will be used for working capital and to finance future acquisitions.

Aquilini will be entitled to prepay all or a part of the facility at any time, from time to time, without bonus or penalty after the date that is 12 months following the date of completion of the transactions. Aquilini has paid the lender a C$400,000 administrative fee and has further agreed to pay the lender a success fee in an amount that is equal to 4.1% per annum, payable monthly, calculated on the full amount of the facility from the date of the initial advance.

Enthusiast Gaming is a Toronto-based vertically integrated video gaming media company. It announced its merger with Aquilini Gameco, the parent company of Luminosity Gaming, a Toronto-based professional e-sports video game organization, in May.

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