GAME Digital has sealed a 50m loan, rising to a potential 100m, from Lajedosa.
It is a new asset-backed deal which GAME says ‘affords greater flexibility than the existing revolving credit facilities, allowing the Group to increase or decrease its stock purchasing capacity through higher or lower funding, as required.’
The firm continued in it statement: ”An asset-backed lending arrangement also provides a less restrictive financial covenant structure compared with the group’s existing revolving credit facilities, which is also more suited to the group’s seasonal fluctuations in trading activity."
GAME’s current ‘revolving credit facility’ was for 30m and was with Barclays and HSBC.
Lajedosa is owned by Duodi, which also happens to have a significant stake in GAME.
It is positive news for the retailer as it looks to bounce back after a disappointing 2015 in its core High Street retail business.