Imax Inks Deal for Credit Facility up to $110 Million
The Toronto-based large-screen exhibitor has finalized a new agreement with Wells Fargo and Export Development of Canada.
Imax has struck a new deal with Wells Fargo and Export Development of Canada for a credit facility of up to $110 million, the Toronto-based large-screen exhibitor said Wednesday.
The new facility replaces a previous $75 million credit line with Wells Fargo and EDC and extends the maturity of the prior facility from Oct. 31, 2013, to Oct. 31, 2015. It consists of up to a $60 million revolving term loan, with no scheduled repayments, and up to a $50 million asset-based revolving loan.
The deal allows Imax to take advantage of lower interest rates. Interest on the new facility has a reduced spread of 2.00% above LIBOR, versus previous interest rates of LIBOR plus 3.75% and 2.75% for the former term loan and revolving asset-based loan, respectively.
The company intends to use proceeds from the new facility for general corporate purposes and to fund its strategic initiatives and its continued global expansion, it said.
"Today our company is on strong financial footing and continuing on a path of significant growth," Imax CEO Richard L. Gelfond said. "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."
EDC is providing $55 million of the new facility, with Wells Fargo Capital Finance Corporation Canada providing the rest.