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Banks

Keywords Studios secures new €140mln loan facility

The video game services group said the new funds would provide “further flexibility and headroom” to expand the business

Keywords Studios PLC’s (LON:KWS) has agreed a new €140mln loan facility in a move it says will provide “further flexibility and headroom” to expand the business.

The AIM-listed firm, which provides services such as dubbing and localisation to the video game industry, said the new facility, agreed with Barclays, Citibank, HSBC and Silicon Valley Bank, would provide €100mln initially over three years with an option to extend to up to €140mln over a further two years, replacing an existing facility of €105mln.

WATCH: Keywords Studios sees 'very strong first half growth' as demand accelerates

"We are pleased to have finalised this facility which is a significant expansion on our previous arrangement and remains in line with our intention of maintaining a conservative mix of equity and debt funding”, said Keywords chief executive Andrew Day.

He added that the firm was currently reviewing a “strong pipeline of acquisition candidates” to scale up the business and “capture a greater proportion” of client demand.

New CFO begins role

In a separate announcement, the company said its new chief financial officer, Jon Hauck, will begin his duties at the firm with immediate effect from today.

His predecessor, David Broderick, will be available to the business until the end of November to ensure an effective handover of the role.

In early trading on Monday, Keywords shares were 4.6% lower at 1,191.2p.

--Adds share price--

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