CNET Networks has entered into a credit agreement with Banc of America Securities to borrow up to $250 million, including a revolving credit facility of as much as $190 million and a term loan topping out at $60 million.
The Internet content company said the funded debt will carry an interest rate of about 8.2 percent. Additional participating lenders include JPMorgan Chase Bank and Citibank, among others. Banc of America was the sole lead arranger and book manager.
CNET said the proceeds will be used for general corporate purposes and to replace its previous one-year, $60 million credit agreement, which expired this month.
All borrowings under the credit facility will mature in October 2011. In addition, CNET is required to repay outstanding borrowings under the term loan in quarterly installments of $1.5 million for the first two years of the credit agreement, $3 million for the third year, and $9 million for the fourth year.
“We are focused on building CNET Networks into a vibrant and valuable company that seizes the long-term opportunity and creates value for all stakeholders,” said Neil Ashe, chief executive officer of CNET. “This facility demonstrates the quality of our financial profile and secures additional financing partners to continue to grow our company.”