According to a filing with the SEC, Zynga’s former $1 billion unsecured, revolving line of credit has been replaced by a far smaller $200 million credit facility. The length of the line has been increased, from four to five years, but it remains unsecured.

Zynga, a company that makes popular consumer video games, has endured duress since its initial public offering, shedding much of its value. The company has suffered from a consumer trend away from Facebook as a platform for gaming, to mobile titles, leaving the company exposed to a user trend that it was not prepared for.

The company has since recorded a string of disappointing quarters as it works to restore its user base and release new, hit games to drive engagement and monetization opportunities.

Zynga recently cut 18% of its workforce. Investors then cut its market valuation by a double digit percentage. Now, the following banks are docking its credit card limit: Morgan Stanley, Goldman Sachs, Bank of American, and JP Morgan Chase.

The company is perhaps best known in recent times for its disastrous purchase of OMGPOP, a gaming company that led to a nine figure writedown; the division has since been shuttered in its entirety. Zynga spent nearly $200 million on OMGPOP, an ironic sum given today’s news.

While a quick analysis of the above news is that banks are looking to reduce their exposure to the troubled company, it’s important to note that it has around $1.3 billion in cash and short term investments, so Zynga is far from running its checking account short.

Still, the company’s full market capitalization is just over $2 billion; investors are therefore valuing Zynga’s core business, less cash, at around $700 million. That’s rough for a firm that was once worth nearly $12 billion.

Top Image Credit: Jo Jakeman Financial information where applicable via Google Finance.