Imax Amends and Increases Revolving Credit Facility to $200 Million
TORONTO – Giant screen exhibitor Imax plans possible stock buybacks and increased global expansion after expanding a credit facility to $200 million.
Toronto-based Imax amended a senior secured credit facility with Wells Fargo Bank, National Association, and a consortium that includes Export Development Canada (EDC), Canadian Imperial Bank of Commerce, Royal Bank of Canada, HSBC Canada and National Bank of Canada.
The new five-year facility, arranged by Wells Fargo, replaces a $110 million facility with Wells Fargo and EDC and will allow Imax to pursue a possible $150 million in stock buybacks and dividends.
Imax will also use the new facility to refinance the existing revolver loan, and for general corporate purposes, including its current expansion into emerging world markets.
The large format exhibitor has recently signed new deals for theaters in Russia, Netherlands, the U.K., China and Brazil as it diversifies from the North American market.
"This new facility, coupled with the recurring cash generated by our business, will provide us with enhanced flexibility as we pursue our strategic initiatives and continue the global expansion of our business," Imax CEO Richard Gelfond said Friday in a statement.