IMAX Corporation (NYSE:IMAX) (TSX:IMX) today announced that it has entered into a new credit facility for up to $110 million with Wells Fargo Capital Finance Corporation Canada, part of Wells Fargo & Company (NYSE:WFOC), with the participation of Export Development Canada (EDC) for $55 million of the new facility.
Press Release from IMAX Corporation
TORONTO, Jun 2, 2011 (GlobeNewswire via COMTEX) -- IMAX Corporation (NYSE:IMAX) (TSX:IMX) today announced that it has entered into a new credit facility for up to $110 million with Wells Fargo Capital Finance Corporation Canada, part of Wells Fargo & Company (NYSE:WFOC), with the participation of Export Development Canada (EDC) for $55 million of the new facility. The new facility replaces IMAX's previous $75 million facility with Wells Fargo and EDC. The new facility will consist of up to a $60 million revolving term loan, with no scheduled repayments, and up to a $50 million asset-based revolving loan. The Company intends to use proceeds from the new facility for general corporate purposes and to fund the Company's strategic initiatives and its continued global expansion. The credit facility extends the maturity of the prior facility from October 31, 2013 to October 31, 2015.
Borrowings under the new credit facility will bear interest at the 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.
"Today our Company is on strong financial footing and continuing on a path of significant growth," said Richard L. Gelfond, CEO, IMAX Corporation. "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."
About IMAX CorporationIMAX Corporation is one of the world's leading entertainment and technology companies, specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry, innovation and the digital media world. The industry's top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe. The Company's new digital projection and sound systems - combined with a growing blockbuster film slate - are fueling the rapid expansion of the IMAX network in established markets such as North America, Western Europe, and Japan, as well as emerging markets such as China and Russia. IMAX theaters deliver the world's best cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture to be transformed into the unparalleled image and sound quality of The IMAX Experience.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo and Shanghai. As of March 31, 2011, there were 528 IMAX theatres (408 commercial, 120 institutional) operating in 46 countries.
About Wells Fargo Capital FinanceWells Fargo Capital Finance provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing and purchase order financing to companies across the United States and Canada.
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Capital Finance Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Societe de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance company.
For more information, visit wellsfargocapitalfinance.ca.