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Cinedigm closes $195 million in new credit facilities

March 4, 2013

Cinedigm Digital Cinema Corp. announced the closing of a $125 million senior non-recourse credit facility led by Societe Generale Corporate & Investment Banking and a $70 million non-recourse credit facility provided by Prospect Capital Corporation.

These two new non-recourse credit facilities will be supported by the cash flows of the Phase 1 deployment and the company’s digital-cinema servicing business and will refinance the Cinedigm’s existing $92 million non-recourse senior 2010 term loan and $98 million recourse note. The senior facility has received an upgraded rating of Baa3 from Moody's Investor Service.

The new five-year term senior loan, provided by a syndicate of institutional lenders led by Societe Generale, will be at a rate of LIBOR +275 basis points with a 1.0% LIBOR floor, substantially improving upon the previous rate of LIBOR +350 basis points with a 1.75% LIBOR floor.

Chris McGurk, chairman and CEO of Cinedigm, stated, "This transaction reaffirms the value of the company’s digital-cinema asset base and positions Cinedigm to accelerate our growth plans.”

“This refinancing is a significant step in our progress towards strengthening Cinedigm's balance sheet,” added Adam M. Mizel, chief operating officer and CFO of Cinedigm. “By lowering our cost of capital, extending our mezzanine debt maturity to 2021 and shifting all of our debt to be secured only by our deployment businesses, we have improved our capital flexibility, unlocked equity value and simplified our story.”


Cinedigm closes $195 million in new credit facilities

March 4, 2013

Cinedigm Digital Cinema Corp. announced the closing of a $125 million senior non-recourse credit facility led by Societe Generale Corporate & Investment Banking and a $70 million non-recourse credit facility provided by Prospect Capital Corporation.

These two new non-recourse credit facilities will be supported by the cash flows of the Phase 1 deployment and the company’s digital-cinema servicing business and will refinance the Cinedigm’s existing $92 million non-recourse senior 2010 term loan and $98 million recourse note. The senior facility has received an upgraded rating of Baa3 from Moody's Investor Service.

The new five-year term senior loan, provided by a syndicate of institutional lenders led by Societe Generale, will be at a rate of LIBOR +275 basis points with a 1.0% LIBOR floor, substantially improving upon the previous rate of LIBOR +350 basis points with a 1.75% LIBOR floor.

Chris McGurk, chairman and CEO of Cinedigm, stated, "This transaction reaffirms the value of the company’s digital-cinema asset base and positions Cinedigm to accelerate our growth plans.”

“This refinancing is a significant step in our progress towards strengthening Cinedigm's balance sheet,” added Adam M. Mizel, chief operating officer and CFO of Cinedigm. “By lowering our cost of capital, extending our mezzanine debt maturity to 2021 and shifting all of our debt to be secured only by our deployment businesses, we have improved our capital flexibility, unlocked equity value and simplified our story.”

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