Turtle Beach Corporation Completes Debt Refinancing

Rhea-AI Summary

Turtle Beach Corporation (Nasdaq: TBCH) has successfully completed a comprehensive debt refinancing, securing a $150 million senior secured credit facility with Bank of America. The new facility includes a $90 million revolving credit facility and a $60 million term loan, both maturing on August 1, 2028.

The refinancing features improved terms, with initial borrowing rates at SOFR plus 325 basis points, representing a significant 450 basis point reduction compared to the previous term loan. This restructuring aims to strengthen the company's capital structure and enhance financial flexibility for future growth initiatives.

Positive

• Secured new $150 million credit facility with improved terms
• Significant 450 basis point reduction in borrowing costs
• Extended loan maturity to August 2028
• Enhanced financial flexibility for future growth

Negative

• Takes on $150 million in new debt obligations

SAN DIEGO, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Turtle Beach Corporation (Nasdaq: TBCH, the “Company”), a leading gaming accessories brand, today announced it has completed a comprehensive refinancing of its credit facilities, strengthening the Company’s capital structure and enhancing financial flexibility.

Turtle Beach entered into a $150 million new senior secured credit facility with Bank of America, comprising a $90 million revolving credit facility and $60 million term loan. These facilities refinance and replace the Company’s previous debt arrangements and will be used for ongoing working capital and general corporate purposes.

Borrowings under the new facility will bear interest at a base rate or term Secured Overnight Financing Rate (SOFR), plus an applicable margin that varies based on the Company’s consolidated total net leverage ratio. The initial interest rate for borrowings under the revolving credit facility and term loan is SOFR plus 325 basis points, representing a reduction of approximately 450 basis points compared to the terms of the prior term loan. Both the revolving credit and term loan facility mature August 1, 2028.

"This refinancing marks a significant milestone in the execution of the Company’s strategy,” said Cris Keirn, Chief Executive Officer, Turtle Beach Corporation. “The new loans with improved pricing and extended tenure significantly reduce our cost of capital and provide the financial foundation to continue investing in our future growth and deliver on our commitment to shareholders.”

About Turtle Beach 
Turtle Beach Corporation (the “Company”) (corp.turtlebeach.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC (www.pdp.com) in 2024. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: TBCH.

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,” “goal,” “project,” “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements in this press release include, but are not limited to, statements regarding potential share repurchases by the Company and the potential refinancing of the Company’s outstanding loan balance. 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. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management’s current beliefs and expectations, 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, our ability to refinance our indebtedness on terms favorable to the Company, trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, 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 integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, 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, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the SEC. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, 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.

CONTACTS

Investors: 
TBCH@icrinc.com
(646) 277-1285 

Public Relations & Media:
MacLean Marshall
Sr. Director, Global Communications
Turtle Beach Corporation
(858) 914 -5093
maclean.marshall@turtlebeach.com

FAQ

What is the size of Turtle Beach's (TBCH) new credit facility?

Turtle Beach secured a $150 million senior secured credit facility, consisting of a $90 million revolving credit facility and a $60 million term loan.

How much did Turtle Beach reduce its borrowing costs in the 2025 refinancing?

The company achieved a 450 basis point reduction in borrowing costs, with new rates at SOFR plus 325 basis points.

When does Turtle Beach's (TBCH) new credit facility mature?

Both the revolving credit and term loan facilities mature on August 1, 2028.

What is the purpose of Turtle Beach's 2025 debt refinancing?

The refinancing aims to strengthen the company's capital structure, enhance financial flexibility, reduce cost of capital, and provide resources for future growth investments.

How is Turtle Beach's new credit facility structured?

The facility consists of a $90 million revolving credit facility and a $60 million term loan, both secured through Bank of America.