YouBet Secures Credit Agreement 

The parent firm behind leading American online horse betting and wagering site YouBet.com has announced a new credit agreement with National City Bank that will allow it to repay a $4.5 million remaining loan to Wells Fargo.

YouBet.com Incorporated stated that the new deal matures at the end of November of 2010 and would provide it with ten million dollars along with a five million dollar revolving credit facility.

The California firm revealed that interest on the loan would be variable depending on the prime rate plus a margin based on specified leverage ratios and that it would use a portion of the proceeds to repay Wells Fargo with the remaining share going for general corporate purposes.

The agreement also contains certain financial covenants including specific earnings thresholds the company must meet while it used priority-secured interest in all of its assets as collateral.

“Our improved operating performance over the past few quarters has enabled us to generate free cashflow, which has positioned us to enter into a new, more flexible agreement and to pay off our Wells Fargo term loan,” said Michael Brodsky, President and Chief Executive Officer for YouBet.com.

“This commitment from our new partner, National City, provides us with significant resources to pursue growth opportunities as they may arise including the possibility of repurchasing the company’s shares.

“Going forward, we will remain focused on growing our handle and our net track revenue at YouBet Express, while maximising our margins at United Tote and operating profitably in order to increase shareholder value.”