Keywords agrees new $400m revolving credit facility

21st Jul 2023 08:14

(Sharecast News) - Video games creative and technology service provider Keywords Studios announced the signing of a new unsecured multicurrency revolving credit facility on Friday, valued at $400m.

The AIM-traded firm said the newly-secured credit facility came with an initial four-year tenor, and included a provision to extend the term by an additional one-year period, subject to the consent of lenders.

It said that flexibility would allow Keywords to adjust its financial strategies based on market conditions and business needs effectively.

The financing arrangement included the support of a group of seven global lenders, and would replace the previous €150m unsecured multicurrency revolving credit facility.

Keywords said the financial covenants of the new facility remained consistent with those of the previous facility.

"We are delighted to have finalised this new expanded revolving credit facility, which is more appropriately scaled for a business of our size," said chief financial officer Rob Kingston.

"We continue to review a strong pipeline of acquisition candidates and this facility, together with our strong cash generation, provides the long-term liquidity and flexibility to pursue our growth strategy whilst maintaining a well-balanced mix of equity and debt funding.

"The success of this refinancing demonstrates the strength of the Keywords' credit profile and ability to secure committed funding in the current lending environment."

At 0904 BST, shares in Keywords Studios were up 0.68% at 1,775p.

Reporting by Josh White for Sharecast.com.