IMAX Corporation Receives Commitment Letter From Wachovia With Participation of
Export Development Canada for New $75 Million Credit Facility
New Facility Extends to October 2013 and Will Allow for
Increased Borrowing Capacity
Company Intends to Redeem Remaining Senior Notes by Year-end
TORONTO, Nov. 5, 2009 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX)
(TSX:IMX) today announced that it has entered into a commitment letter with
Wachovia Capital Finance Corporation pursuant to which Wachovia, with the
participation of Export Development Canada, has committed to provide a four-year
senior secured $75 million credit facility. Upon execution of definitive
documents, the credit facility will consist of revolving loans of up to $40
million and a term loan of $35 million. Once completed, the Company intends to
use the new facility to finance its future growth and working capital
requirements. The proposed credit facility matures on October 31, 2013 and will
replace the Company's previous $40 million credit facility which was to mature
in October of 2010.
As currently contemplated, borrowings under the credit facility will bear
interest at variable rates based on LIBOR or Wachovia's prime rate plus variable
margins at the Borrower's option, under which applicable interest rates
currently range from 3.03% to 4.03% per annum.
As previously announced on October 2, 2009, the Company called $75 million of
its Senior Notes for redemption on December 1, 2009. The Company intends to
redeem the remaining $29.4 million of its Senior Notes by year-end.
"This proposed new facility, combined with the redemption of our remaining
senior notes, are very important steps toward creating a capital structure that
will enable the Company to further realize the growth potential for the IMAX
brand," said Richard L. Gelfond, Chief Executive Officer of IMAX Corporation.
"We believe our progress throughout this year to strengthen our balance sheet
and enhance our financial flexibility is reflective of the early success we have
achieved with our new business model and our entry in the digital arena."
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology
companies, specializing in immersive motion picture technologies. The worldwide
IMAX network is among the most important and successful theatrical distribution
platforms for major event Hollywood films around the globe, with IMAX(R)
theatres delivering the world's best cinematic presentations using proprietary
IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's
groundbreaking digital re-mastering technology that allows it to digitally
transform virtually any conventional motion picture into the unparalleled image
and sound quality of The IMAX Experience(R). The IMAX brand is recognized
throughout the world for extraordinary and immersive entertainment experiences
for consumers. As of September 30, 2009, there were 403 IMAX theatres (280
commercial, 123 institutional) operating in 44 countries.
IMAX(R), IMAX(R) 3D, IMAX(R) DMR, Experience It In IMAX(R), The IMAX 3D
Experience(R) and The IMAX Experience(R) 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).
The IMAX Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6469
This press release contains forward looking statements that are based on
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. Important
factors that could affect these statements include, but are not limited to,
general economic, market or business conditions, including the length and
severity of the current economic downturn, the opportunities that may be
presented to and pursued by the Company, the performance of IMAX DMR films,
conditions in the in-home and out-of home entertainment industries, the signing
of theatre system agreements, changes and developments in the commercial
exhibition industry, the failure to convert theatre system backlog into revenue,
investments and operations in foreign jurisdictions, foreign currency
fluctuations and the Company's prior restatements and the related litigation and
ongoing inquiries by the SEC and the OSC. These factors and other risks and
uncertainties are discussed in the Company's most recent Annual Report on Form
10-K and most recent Quarterly Reports on Form 10-Q.
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CONTACT: IMAX Corporation, New York
Media:
Sarah Gormley
212-821-0155
sgormley@imax.com
Investors:
Heather Anthony
212-821-0121
hanthony@imax.com
Rogers & Cowan, Los Angeles
Entertainment Media:
Elliot Fischoff/Jason Magner
310-854-8128
jmagner@rogersandcowan.com
Sloane & Company, New York
Business Media:
Whit Clay
212-446-1864
wclay@sloanepr.com
