SAN DIEGO, June 23, 2016 /PRNewswire/ -- Turtle Beach Corporation (NASDAQ: HEAR), a leading audio technology company for over 40 years, has successfully amended its credit agreements with its term loan and ABL lenders.
The amendments provide, among other things, a temporary reduction of the existing loan availability blocks for the period of June 17, 2016 through October 31, 2016. This temporary reduction enhances the Company's borrowing base by $3,000,000 through September 30, 2016 and by $1,500,000 from October 1, 2016 through October 31, 2016.
"Continued strong headset sales, solid consumer response to our Elite Pro headsets along with our just-announced holiday products are driving us to buy more inventory in advance of the holiday season. So today's amendment provides our company with valuable working capital to accommodate our strong headset business, which has continued to grow faster than expected and is supportive of the increased outlook we provided on our first quarter call," said Juergen Stark, CEO, Turtle Beach Corporation. "We are balancing this headset growth while carefully managing our spend in the HyperSound business as we continue to refine the sales approach and find the most effective route to scaling fully-active offices."
Today's amendments also call for the Company to maintain certain cash flow levels with respect to HyperSound during each rolling four-week period beginning June 24, 2016 through October 28, 2016.
Full disclosure of the amendments can be found in the Form 8-K filing made with the Securities and Exchange Commission this afternoon.
About Turtle Beach Corporation
Turtle Beach Corporation (http://corp.turtlebeach.com) designs innovative, market-leading audio products for the consumer, healthcare and commercial sectors. Under its award-winning Turtle Beach brand (www.turtlebeach.com), the Company has been the clear market share leader for the past five-plus years with its wide selection of acclaimed gaming headsets for use with Xbox One and PlayStation 4, as well as personal computers and mobile/tablet devices. Under the HyperSound brand (www.hypersound.com), the Company markets pioneering directed audio solutions that have applications in hearing healthcare, digital signage and kiosks and consumer electronics. The Company's shares are traded on the NASDAQ Exchange under the symbol: HEAR.
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events. Statements containing the words "may", "could", "would", "should", "believe", "expect", "anticipate", "plan", "estimate", "target", "project", "intend" and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Forward-looking statements are based on management's current belief, as well as assumptions made by, and information currently available to, management.
While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to the Company's liquidity, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the implementation of any businesses we acquire, our indebtedness, and other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K and the Company's other periodic reports. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.
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SOURCE Turtle Beach Corporation