Keywords Studios PLC on Friday said it signed a new four-year revolving credit facility deal worth $400 million to pursue its pipeline of acquisition candidates.

The Dublin-based provider of technical and creative services for video game production said the new unsecured, multi-currency facility replaces its previous £150 million one and is for an initial four-year term, with an option to extend the term by a further year, subject to lender consent.

Keywords Studios said the financial covenants remain consistent with the previous facility, while the currency has changed from euro to dollar to match the expected predominant currency of future borrowings.

‘We are delighted to have finalised this new expanded RCF, which is more appropriately scaled for a business of our size,’ said Chief Financial Officer Rob Kingston.

Keywords has a market capitalisation of £1.42 billion. Shares were up 1.6% to 1,791.00 pence each in London on Friday morning.

‘We continue to review a strong pipeline of acquisition candidates and this RCF, together with our strong cash generation, provides the long-term liquidity and flexibility to pursue our growth strategy whilst maintaining a well-balanced mix of equity and debt funding,’ Kingston said.

‘The success of this refinancing demonstrates the strength of the Keywords’ credit profile and ability to secure committed funding in the current lending environment.’

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