AGOURA HILLS, Calif.--(BUSINESS WIRE)--May. 6, 2009--
THQ Inc. (NASDAQ: THQI) today announced that it has signed a commitment
letter for a $35 million senior secured credit facility with Bank of
America, NA.
The new credit facility will provide THQ with a revolving line of credit
for working capital and other corporate purposes and will be secured by
the company’s assets. Revolving loans will bear interest, at THQ’s
option, at the base rate plus a spread of 1.0% to 2.5% or LIBOR plus
2.5% to 4.0%, depending on the company’s fixed charge coverage ratio.
The credit line is subject to the execution of final agreements, which
the company expects to complete by July 5, 2009.
“In today’s economic environment, we are pursuing this credit facility
as a prudent backup to our $141 million cash and short-term investment
balance at March 31, 2009,” said Paul Pucino, THQ executive vice
president and CFO.
About THQ
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher
of interactive entertainment software. Headquartered in Los Angeles
County, California, THQ sells product through its global network of
offices located throughout North America, Europe and Asia Pacific. More
information about THQ and its products may be found at www.thq.com
and www.thqwireless.com.
THQ, and its respective logos are trademarks and/or registered
trademarks of THQ Inc.
All other trademarks are trademarks or registered trademarks of their
respective owners.
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited to, the
company’s execution of final agreements and closing of the credit
facility transaction, the company’s liquidity and use of the credit
facility. These forward-looking statements are based on current
expectations, estimates and projections about the business of THQ Inc.
and its subsidiaries (collectively referred to as “THQ”) and are based
upon management’s beliefs and certain assumptions made by management.
Such forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements,
including, but not limited to, economic, competitive and technological
factors affecting the operations, markets, products, services and
pricing of THQ, and our ability to successfully implement our cost
reduction plans. Unless otherwise required by law, THQ disclaims
any obligation to update its view on any such risks or uncertainties or
to revise or publicly release the results of any revision to these
forward-looking statements. Readers should carefully review the
risk factors and the information that could materially affect THQ’s
financial results, described in other documents that THQ files from time
to time with the Securities and Exchange Commission, including its
Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for
the fiscal period ended March 31, 2008, and particularly the discussion
of risk factors that may affect results of operations set forth therein.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release.
Source: THQ Inc.
THQ/Investor & Media Relations
Julie MacMedan
818-871-5125
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