DCIP closes $755 million refinancing transaction
Digital Cinema Implementation Partners, LLC (DCIP) closed on a new $755 million credit facility comprised of an eight-year $680 million term loan B and a five-year $75 million revolving credit facility. The proceeds from the term loan B were used to prepay existing debt and to pay fees and other transaction-related expenses.
“This transaction provides DCIP substantial financial and operating benefits by extending the loan maturities associated with our digital deployment and significantly reducing our cost of debt,” said DCIP president and CEO Rich Manzione. “This will be achieved in part through the planned repayment in full of higher-interest mezzanine-level notes, with cash on hand and borrowings under the new revolving credit facility.”
DCIP is a joint venture formed by the three leading U.S. theatre companies, AMC Entertainment, Cinemark Holdings and Regal Entertainment Group, to replace 35mm projectors in the U.S. with digital projection systems. DCIP has deployed 14,327 digital projection systems in the U.S. as of March 31, 2013. Digital conversion of these exhibitors’ existing projection systems is expected to be completed in September 2013.
In addition to its U.S. digital deployment, DCIP actively manages the deployment of over 1,800 digital systems in Canada for Canadian Digital Cinema Partnership, a joint venture between Cineplex Inc. and Empire Theatres Ltd., the two largest Canadian theatre companies. DCIP has also agreed to manage the digital deployment of approximately 1,300 projection systems across Latin America for Cinemark.