IMAX Corporation Enters Into New $75 Million Credit Facility
November 16, 2009 – 4:02 pmNew Facility Extends to October 2013 and Allows for Increased Borrowing Capacity
Company Announces Redemption of All Remaining Senior Notes by December 21, 2009
IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) today announced that it has entered into a new credit facility with Wachovia Capital Finance Corporation pursuant to which Wachovia, with the participation of Export Development Canada, has committed to provide a four-year senior secured $75 million credit facility. The credit facility consists of revolving loans of up to $40 million and a term loan of $35 million. The Company intends to use the new facility to finance its future growth and working capital requirements. The credit facility matures on October 31, 2013 and replaces the Company’s previous $40 million credit facility which was to mature in October of 2010.
Borrowings under the credit facility will bear interest at variable rates based on LIBOR or Wachovia’s prime rate plus variable margins at the Borrower’s option, under which applicable interest rates currently range from 3% to 4% per annum.
As previously announced on October 2, 2009, the Company called $75 million of its Senior Notes for redemption on December 1, 2009. Today, the Company announced that it has given notice to its trustee of its intent to redeem its remaining $29.4 million principal amount of its 9 5/8% Senior Notes due December 1, 2010 (the “Notes”). The redemption notice stipulates a redemption date of December 21, 2009 at a price of 100.00%, plus accrued and unpaid interest. Upon completion of the current redemptions, the Company will have redeemed the full $160 million 9 5/8% Senior Notes due December 2010.
“This new credit facility and the redemption of our remaining senior notes are, without a doubt, two of the most important milestones in our Company’s history,” said Richard L. Gelfond, Chief Executive Officer of IMAX Corporation. “These initiatives should result in upwards of $15 million in annual interest expense savings in comparison to 2008, and, most importantly, this new capital structure positions us to realize the future growth potential for the IMAX brand.”
This news release is for information purposes only and is not an offer to buy any securities of IMAX Corporation. A formal notice of redemption is being provided separately to holders of the Notes in accordance with the terms of the indenture governing the Notes.
UPDATE: More coverage on IMAX’s recent announcement:
Associated Press: IMAX gets new $75 million credit line
Cinenema: IMAX gets new $75 actor acclaim line
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