NEW YORK (The Deal) - Zynga (ZNGA), the online and mobile gaming company behind popular titles such as Farmville and Words With Friends, has quietly lowered the borrowing limit on its revolving credit facility to $200 million from $1 billion, signaling that it's not likely to make acquisitions to rev up its stagnating business.
San Francisco-based Zynga raised a big red flag when it laid off 18% of its workforce, or about 520 employees, on June 3. Now, according to a June 24 filing with the Securities and Exchange Commission, the company has amped up its cost-cutting program by reducing the borrowing limit on its revolver.
Lowering the borrowing limit will save Zynga money, since the company has to pay quarterly fees related to the untapped borrowing capacity on the credit facility. Zynga said no loans have been made under the credit agreement.
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