Game Digital has agreed an asset-backed loan facility of up to £100m from its largest shareholder to give the group more financial flexibility.
The retailer said it has been investigating lending arrangements to replace its existing revolving credit facility to “better suit the needs of the business”.
Last month Game reported a 32% fall in half-year profits as it warned of a “challenging” market.
The new loan facility agreement is with Lajedosa Investments, an entity of Duodi Investments, which is an investment vehicle owned by Game’s largest shareholder US hedge fund Elliott Advisors.
Game said: “The quantity of the stock that the business seeks to purchase varies seasonally and can raise significantly around the dates of new hardware and software releases. Consequently, the group has a preference for an asset-backed loan facility.”
Game’s remaining shareholders will have to give the green light to the new arrangement.
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