EGLX - Enthusiast Gaming Expands Credit Facilities | Benzinga
LOS ANGELES, Oct. 12, 2023 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. ("Enthusiast Gaming" or the "Company") (NASDAQ:EGLX, TSX:EGLX), the leading gaming media and entertainment company in North America, today announced that it has entered into an amended and restated commitment letter (the "Amendment") with its primary lender in relation to its term and operating credit facilities (collectively, the "Facilities") to provide up to $7.0 million of additional liquidity.
The additional liquidity provided by the Amendment will be derived as follows:
- A $2.5 million increase of the operating facility from $5.0 million to $7.5 million;
- A six-month deferral on principal repayments under the term facility, providing the Company with approximately $2.0 million of additional liquidity over the principal-deferral period; and
- The ability to increase the limit of the operating facility by an additional $2.5 million upon the Company maintaining certain metrics relating to its borrowing base, subject to lender approval.
In addition, the Amendment extends the maturity of the Facilities from December 31, 2024, to June 30, 2025. It is a condition of the Amendment that a minimum of $2.5 million of the operating facility shall be guaranteed by Export Development Canada ("EDC") pursuant to the terms of EDC's standard documentation.
Nick Brien, CEO of Enthusiast Gaming, commented, "This new financing strengthens our financial position with up to $7 million of additional liquidity over the coming months as we execute on our business plans and target our goal of profitability in Q4 2023. We appreciate the long-standing support and partnership of our lender which serves as a vote of confidence in the quality of our assets and strategy."
The Amendment includes related modifications of certain financial covenants pertaining to the Company, and remains subject to customary closing conditions, including receipt of the EDC guarantee. The remaining terms, conditions, and covenants ...