21st Apr 2016 06:57
LONDON (Alliance News) - Video games retailer GAME Digital PLC on Thursday said it has entered into an asset-backed lending facility of up to GBP100.0 million with Lajedosa Investments Sarl.
Lajedosa is an entity associated with Duodi Investments Sarl, a major shareholder in GAME Digital which is in turn owned by Elliott International LP and Elliott Associates LP. Duodi owns a 43% stake in GAME.
The new facility would replace GAME's existing GBP30.0 million revolving credit facility in place with HSBC and Barclays.
GAME said it has been seeking more flexible forms of funding in order to better manage its financing requirements.
The quantity of stock the group has to purchase varies seasonally and can spike at times of new hardware or software releases, GAME said. As a result of this, it said an asset-backed facility will give it greater flexibility than a revolving credit facility, allowing it to increase or decrease its stock purchasing capacity through higher or lower funding as required.
By Sam Unsted; [email protected]; @SamUAtAlliance
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