IMAX Enters Into New $300 Million Credit Facility
NEW YORK, July 3, 2018 /CNW/ -- IMAX Corporation (NYSE: IMAX) today announced it has entered into a new five-year senior secured revolving credit facility, replacing the Company's prior credit facility. The new facility expands the Company's borrowing capacity from $200 million to $300 million, and contains an accordion feature allowing the Company to further expand its borrowing capacity to $440 million or greater. Borrowings under the new facility will bear interest at the reduced spread of 1% to 1.75% above LIBOR, depending on the Company's leverage ratio. The facility also contains customary terms for a transaction of this type, including a single financial maintenance covenant that requires the Company to maintain a senior secured net leverage ratio of no more than 3.25x.
The Company intends to use the proceeds of the facility to repay outstanding term loan debt in connection with its Playa Vista headquarters, to finance ongoing working capital requirements and for other general corporate purposes.
Wells Fargo Securities, LLC, served as sole lead arranger on the transaction. Wells Fargo Securities, LLC and Citibank, N.A. served as joint bookrunners; Citibank, N.A. served as syndication agent; and Export Development Canada, HSBC Bank Canada and National Bank of Canada served as co-documentation agents.
"This new facility, coupled with the recurring cash generated by our network, will provide us with enhanced flexibility as we continue the global expansion of our business and pursue other avenues to increase shareholder value," said Patrick McClymont, Chief Financial Officer of IMAX.
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and, as such, IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of March 31, 2018, there were 1,382 IMAX theatre systems (1,286 commercial multiplexes, 12 commercial destinations, 84 institutional) operating in 77 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
This press release contains forward looking statements that are based on IMAX management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. These risks and uncertainties are discussed in IMAX's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.
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