ContentFilm secures $40 mil debt facility
EmptyLONDON -- Media rights company ContentFilm, listed here on the Alternative Investment Market, has sealed a deal with JPMorgan Chase for a $40 million long-term debt facility.
The ContentFilm board told the markets Wednesday that the five-year $40 million revolving credit facility will replace its existing loan arrangements.
JPMorgan Chase has agreed to structure and arrange the facility and serve as the administrative agent for it.
ContentFilm has drawn down $27.5 million of its existing $32 million loan facility, after taking account of the recent acquisition of the Canadian Broadcasting Corp. library.
It expects the new expanded facility of $40 million to provide the company with $10 million-$15 million of liquidity in the short term, "which will be available to expand the company's product acquisition activities and for further corporate expansion."
The loan agreement comes hot on the heels of the collapse of a deal in March to sell ContentFilm to Canada's Peace Arch Entertainment.
That deal hit the buffers because of a decline in Peace Arch stock value, the turmoil in capital markets and delays in the completion of an audit at the Canadian company.