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Motorsport Games Secures $3 Million Revolving Credit Facility

Story Highlights
  • Motorsport Games obtained a $3 million secured revolving credit line from Citibank, maturing in 2027.
  • The loan imposes strict financial covenants and default terms, heightening discipline and potential risks for stakeholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Motorsport Games Secures $3 Million Revolving Credit Facility

Meet Samuel – Your Personal Investing Prophet

An update from Motorsport Games ( (MSGM) ) is now available.

On February 20, 2026, Motorsport Games Inc. entered into a business loan agreement with Citibank, securing a revolving line of credit of up to $3 million at a floating interest rate tied to Adjusted Term SOFR plus 2.250%, with a maturity date of February 20, 2027. The facility is evidenced by a promissory note and is secured by a lien on substantially all of the company’s assets.

The credit agreement imposes financial covenants, including maintaining a fixed charge coverage ratio above 1.2 to 1.0 and a cash flow leverage ratio not exceeding 2.5 to 1.0, while restricting additional liens on company assets. Default triggers, such as covenant breaches, cross-defaults, or significant ownership changes of 25% or more, could lead to a 3 percentage point interest rate increase and immediate acceleration of all amounts due, underscoring tighter financial discipline and elevated risk for shareholders and creditors if performance deteriorates.

The most recent analyst rating on (MSGM) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Motorsport Games stock, see the MSGM Stock Forecast page.

Spark’s Take on MSGM Stock

According to Spark, TipRanks’ AI Analyst, MSGM is a Neutral.

The score is driven primarily by the earnings and operational turnaround (profits improving and going-concern disclosure removed) and a currently stronger balance sheet. It is held back by weak cash-flow conversion (negative free cash flow), a high P/E valuation, and overbought technical conditions that raise near-term volatility risk.

To see Spark’s full report on MSGM stock, click here.

More about Motorsport Games

Motorsport Games Inc. is a video game developer and publisher focused on racing and motorsport-themed titles. The company operates in the interactive entertainment industry, creating and distributing racing simulation games and related esports content for a global audience of motorsport enthusiasts and gamers.

Average Trading Volume: 75,315

Technical Sentiment Signal: Buy

Current Market Cap: $20.8M

Learn more about MSGM stock on TipRanks’ Stock Analysis page.

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