AGOURA HILLS, Calif.--(BUSINESS WIRE)--THQ Inc. (NASDAQ: THQI) announced today that it has entered into a four-year, asset-based credit facility with Wells Fargo Capital Finance, LLC. The credit facility provides for borrowings up to $50 million for working capital requirements, letters of credit and other general corporate purposes, and increases to $75 million during the upcoming peak sales period.
In connection with the new facility, THQ terminated its prior $35 million credit agreement with Bank of America. There were no borrowings or letters of credit outstanding under the previous credit facility.
"We are pleased to establish this new, larger credit facility with Wells Fargo,” said Paul Pucino, THQ’s Executive Vice President and Chief Financial Officer. "This new line, along with THQ’s capacity to generate strong cash flows, provide the company with substantial financial flexibility as it executes on plans for growth in the coming years."
THQ will issue a Form 8-K today that includes additional details regarding terms of the credit facility.
About THQ
THQ Inc. (NASDAQ: THQI) is a leading worldwide developer and publisher of interactive entertainment software. The company develops its products for all popular game systems, personal computers, wireless devices and the Internet. 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 http://www.thq.com/. THQ and the THQ logo are trademarks and/or registered trademarks of THQ Inc.
THQ Inc. Caution Concerning Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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”), including, but not limited to, expectations of video game console and software growth, financial guidance, estimated release dates and the potential for online gaming. These statements are based upon management’s current 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, business, competitive, economic, legal, political and technological factors affecting our industry, operations, markets, products or pricing. 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 Annual Report on Form 10-K for the fiscal period ended March 31, 2011 and subsequent Quarterly Reports on Form 10-Q, and particularly the discussion of trends and risk factors set forth therein. 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 are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.