Key Developments For IMAX Corporation
IMAX Corporation (IMAX.O) (Consolidated Issue listed on NASDAQ Global Market)
IMAX Corporation Enters Into New $75 Million Credit Facility
IMAX Corporation announced that it has entered into a new credit facility 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. The credit facility consists of revolving loans of up to $40 million and a term loan of $35 million. The Company intends to use the new facility to finance its future growth and working capital requirements. The credit facility matures on October 31, 2013 and replaces the Company's previous $40 million credit facility which was to mature in October of 2010. 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% to 4% 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 announced that it has given notice to its trustee of its intent to redeem its remaining $29.4 million principal amount of its 9 5/8% Senior Notes due December 1, 2010 (the Notes). The redemption notice stipulates a redemption date of December 21, 2009 at a price of 100.00%, plus accrued and unpaid interest. Upon completion of the current redemptions, the Company will have redeemed the full $160 million 9 5/8% Senior Notes due December 2010.
IMAX Corporation Receives Commitment Letter From Wachovia With Participation of Export Development Canada For New $75 Million Credit Facility
IMAX Corporation 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.
IMAX Corporation Reaffirms FY 2009 Earnings Guidance; Comments On FY 2010 Earnings Guidance
IMAX Corporation announced that it continues to expect profitability for fiscal 2009 and believes it is well-positioned to deliver increased earnings in fiscal 2010. According to Reuters Estimates, analysts are expecting the Company to report net profit of $4.60 million for fiscal 2009 and net profit of $27.78 million for fiscal 2010.
IMAX Corporation Announces Europalaces/Pathe Expand Joint Venture Partnership
IMAX Corporation announced an agreement to install three IMAX theatre systems as part of an expanded joint venture partnership between the two companies. The deal includes the installation of IMAX's digital projection system in Rotterdam and Eindhoven, as well as a digital upgrade to the exhibitor's existing film-based IMAX theatre in Amsterdam. The Amsterdam upgrade and new Rotterdam location are each scheduled to open in time for the December 17th IMAX 3D release of James Cameron's Avatar in international markets. Separately, the agreement with Europalaces/Pathe also includes upgrading the Gaumont Disney Village IMAX outside Paris, France with IMAX's digital projection system, which represents a further extension of the developing business relationship between the two companies.
IMAX Corporation And ODEON Cinemas Expand Partnership
IMAX Corporation and ODEON & UCI Cinemas Group announced an agreement to install an IMAX theatre in the exhibitor's multiplex in Cardiff, Wales. This newest location and the exhibitor's previously announced IMAX location in Gateshead, UK, are scheduled to open in time for the release of Avatar on December 18, 2009. Both will feature IMAX's digital projection technology. The deal brings the total number of IMAX theatres operated by ODEON to five.
