A new two-year agreement with National City Bank will help Youbet.com Inc. repay the remaining $4.5 million term loan balance owed to Wells Fargo, the company said on Thursday.
Youbet, a California provider of technology and pari-mutuel horseracing content, said the new credit agreement, which matures on Nov. 30, 2010, will provide a $10 million term loan and a $5 million revolving credit facility.
Although a portion of the loan was used to repay Wells Fargo, the remaining portion will be used for general corporate purposes, Youbet said.
“Our improved operating performance over the past few quarters has enabled us to generate free cash flow, which has positioned us to enter into a new, more flexible agreement and to pay off our Wells Fargo term loan,” said Michael Brodsky, the company's president and chief executive, in a prepared statement.