Wells Fargo, Others Expand IMAX Facility to $200MM
IMAX announced it entered into an amended senior secured credit facility for up to $200 million with Wells Fargo Bank with the participation of Export Development Canada (EDC), the Canadian Imperial Bank of Commerce (CIBC), Royal Bank of Canada (RBC), HSBC Canada and the National Bank of Canada.
Wells Fargo served as administrative agent, sole lead arranger and sole bookrunner on the transaction. The new facility replaces IMAX’s previous $110 million facility with Wells Fargo and EDC and will permit IMAX to undertake up to $150 million in stock buybacks and dividends provided certain covenants are maintained.
IMAX intends to use proceeds from the new facility to refinance the existing revolver and for general corporate purposes, such as funding its strategic initiatives, including its continued global expansion, ongoing working capital requirements, investments and capital expenditures. The maturity date of the new credit facility is February 7, 2018.
“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,” said Richard L. Gelfond, CEO of IMAX.
IMAX combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat to a world you’ve never imagined.