Corsair Gaming enters $225 million credit agreement with Bank of America

Corsair Gaming, Inc. (NASDAQ:CRSR), a gaming peripherals manufacturer with annual revenue of $1.35 billion, announced Wednesday that it has entered into an amended and restated credit agreement with Bank of America, N.A., as administrative agent, and a group of lenders. The agreement, signed June 30, 2025, provides Corsair Gaming and certain U.S. subsidiaries with total credit commitments of $225 million. According to InvestingPro data, the company maintains a healthy current ratio of 1.52, indicating solid short-term liquidity position.

The new credit facilities include a $100 million five-year revolving credit facility and a $125 million five-year term loan facility. Both facilities are set to mature on June 30, 2030. The agreement also allows for potential incremental facilities up to an additional $125 million, subject to conditions specified in the agreement. InvestingPro analysis indicates that while the company currently carries $216.1 million in total debt, its debt-to-equity ratio remains manageable at 0.35.

According to the company’s statement, the new credit agreement replaces Corsair’s prior senior credit facilities, which were established in September 2021 with Bank of America.

Interest rates for the new term loan and revolving credit facility will be determined at Corsair’s election. The company can choose either a rate based on term SOFR plus a spread ranging from 1.50% to 2.50%, depending on its total net leverage ratio, or a base rate option. The base rate is defined as the highest of Bank of America’s prime rate, the federal funds rate plus 0.50%, or one-month term SOFR plus 1.0%, with an added spread of 0.50% to 1.50%, also linked to Corsair’s leverage ratio.

Corsair’s obligations under the agreement are guaranteed by substantially all of its U.S. subsidiaries and are secured by a security interest in most of the company’s and guarantor subsidiaries’ assets, with certain exceptions as detailed in the agreement.

The agreement contains standard affirmative and negative covenants, including restrictions on additional indebtedness, liens, asset sales, investments, acquisitions, dividend payments, share repurchases, and mergers. It also requires Corsair to maintain a maximum total net leverage ratio and a minimum interest coverage ratio.

If an event of default occurs, lenders may suspend or terminate their lending commitments, accelerate repayment obligations, and exercise other rights. Interest rates may increase by 2.0% following certain defaults, and in the case of insolvency-related defaults, all obligations become immediately due.

This summary is based on a statement made in a recent SEC filing.

In other recent news, Corsair Gaming Inc . reported its Q1 2025 earnings, revealing a mixed financial performance. The company achieved a revenue of $396.8 million, exceeding the forecast of $366.2 million. However, earnings per share (EPS) fell short of expectations, coming in at $0.09 against a forecast of $0.11. Additionally, Corsair has refinanced its credit arrangements, securing a $100 million revolving credit facility and a $125 million term loan through Bank of America. These credit facilities will mature on June 30, 2030, and offer flexibility for strategic investments. The company also highlighted the successful integration of Fanatec, which contributed to growth in the Gamer and Creator Peripheral segment. Corsair’s gross margin improved to 27.7% from 25.7% year-over-year, reflecting operational efficiency and strategic innovations. The company did not provide full-year guidance due to tariff uncertainties but remains optimistic about ongoing hardware refresh cycles.

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