Multimedia Games' Amended Credit Agreement Lowers Borrowing Costs and Extends Maturity Date

Multimedia Games Holding Company, Inc. MGAM announced today that it has amended and extended its credit agreement with Comerica Bank and its other lenders to, among other items, significantly reduce effective interest rates, reduce the total borrowing capacity available under the credit agreement to $74 million from $90 million and extend the maturity date to August 2016 from April 2012. Pursuant to the amended credit agreement, the credit facility has been restructured into three separate facilities: (i) an approximately $37 million term loan priced at 300 basis points over LIBOR; (ii) an approximately $20.6 million revolving credit facility priced at 225 basis points over LIBOR; and, (iii) an approximately $16.4 million draw-to-term loan with a 30-month draw period priced at 300 basis points over LIBOR. The credit agreement previously consisted of a $45 million term loan priced at 450 basis points over LIBOR with a LIBOR floor of 2.00% and a $45 million revolving credit facility priced at 325 basis points over LIBOR with a LIBOR floor of 2.00%. As of June 30, 2011, Multimedia Games had a net cash position of approximately $5 million reflecting a cash balance of approximately $49 million and approximately $44 million in outstanding borrowings. Based on current 30-day LIBOR rates and the Company's June 30, 2011 outstanding borrowings, Multimedia Games expects the interest rates available under the amended credit agreement will reduce annual interest expense by more than $1 million. The Company will be required to increase its quarterly principal term loan payments from $187,500 to $925,000.