NEW YORK, June 4, 2012 /PRNewswire/ -- Alliance
Distributors Holding Inc. (Pink Sheets: ADTR) today announced that
it has entered into a three-year credit facility with PNC Bank that
consists of a $15,000,000 revolving
credit line and a $1.5 million term
loan. Interest on outstanding borrowings is payable at either the
bank's prime rate (prime plus 0.25% on the term loan) or at 2.5%
(3.0% on the term loan) above the Eurodollar rate. Borrowings
under the revolving credit line are based on eligible inventory and
receivables. The term loan, subject to certain early
repayment triggers after June 2013,
is payable ratably over 36 months. The loan facility is
secured by a first lien on substantially all of the company's
assets, and is subject to compliance with certain financial
covenants. It replaces the company's prior loan facility with
Rosenthal & Rosenthal.
Jay Gelman, President and CEO of
Alliance, said, "We are pleased to announce our banking
relationship with PNC, a leading national financial institution.
The new credit facility gives us cost savings in interest and fees
and the flexibility to make further investments in our distribution
and content businesses.
"We take this opportunity to thank Rosenthal & Rosenthal for
the outstanding relationship we've had with them for more than nine
years. Their support throughout that period was a major factor in
our growth as a company."
About Alliance Distributors Holding Inc.
Alliance Distributors Holding Inc.
(www.alliancedistributors.com), which does business as Alliance
Distributors, is a full-service wholesale videogame distributor,
specializing in gaming products and accessories for all key
manufacturers and 3rd party publishers. Alliance Distributors
offers support on: PS3, PSP, PS2, X-Box 360, Wii, DS and GBA SP,
peripherals and software titles. Alliance develops downloadable and
social content video games through Metaversal Studios
(www.metaversalstudios.com), which it wholly-owns.
SOURCE Alliance Distributors Holding Inc.
