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| 8-K - 8-K - IMAX CORP | o71462e8vk.htm |
IMAX CORPORATION
Exhibit 99.1
IMAX CORPORATION
2525 Speakman Drive
Mississauga, Ontario, Canada L5K 1B1
Tel: (905) 403-6500 Fax: (905) 403-6450
www.imax.com
Mississauga, Ontario, Canada L5K 1B1
Tel: (905) 403-6500 Fax: (905) 403-6450
www.imax.com
IMAX CORPORATION ENTERS INTO NEW $110 MILLION CREDIT FACILITY
New facility provides for increased borrowing capacity
Maturity extended to 2015
New facility provides for increased borrowing capacity
Maturity extended to 2015
TORONTO —June 2, 2011 — IMAX Corporation (NYSE: IMAX; TSX: IMX) today announced that it has
entered into a new credit facility for up to $110 million with Wells Fargo Capital Finance
Corporation Canada, part of Wells Fargo & Company (NYSE: WFOC), with the participation of Export
Development Canada (EDC) for $55 million of the new facility. The new facility replaces IMAX’s
previous $75 million facility with Wells Fargo and EDC. The new facility will consist of up to a
$60 million revolving term loan, with no scheduled repayments, and up to a $50 million asset-based
revolving loan. The Company intends to use proceeds from the new facility for general corporate
purposes and to fund the Company’s strategic initiatives and its continued global expansion. The
credit facility extends the maturity of the prior facility from October 31, 2013 to October 31,
2015.
Borrowings under the new credit facility will bear interest at the reduced spread of 2.00% above
LIBOR, versus previous interest rates of LIBOR plus 3.75% and 2.75% for the former term loan and
revolving asset-based loan, respectively.
“Today our Company is on strong financial footing and continuing on a path of significant growth,”
said Richard L. Gelfond, CEO, IMAX Corporation. “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.”
About IMAX Corporation
IMAX Corporation is one of the world’s leading entertainment and technology companies,
specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With
a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized
entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry,
innovation and the digital media world. The industry’s top filmmakers and studios are utilizing
IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is
among the most important and successful theatrical distribution platforms for major event films
around the globe. The Company’s new digital projection and sound systems — combined with a growing
blockbuster film slate — are fueling the rapid expansion of the IMAX network in established markets
such as North America, Western Europe, and Japan, as well as emerging markets such as China and
Russia. IMAX theaters deliver the world’s best cinematic presentations using proprietary IMAX, IMAX
3D, and IMAX DMR (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture
to be transformed into the unparalleled image and sound quality of The IMAX Experience.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo and
Shanghai. As of March 31, 2011, there were 528 IMAX theatres (408 commercial, 120 institutional)
operating in 46 countries.
IMAX®,
IMAX® 3D, IMAX DMR®,
Experience It In
IMAX®, An IMAX 3D
Experience® and The IMAX
Experience®
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).
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About Wells Fargo Capital Finance
Wells Fargo Capital Finance provides traditional asset-based lending, specialized senior secured
financing, accounts receivable financing and purchase order financing to companies across the
United States and Canada. .
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable
and purchase order finance services of Wells Fargo & Company and its subsidiaries, including Wells
Fargo Capital Finance Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also
doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of
Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank
holding company or an insurance company.
For more information, visit wellsfargocapitalfinance.ca
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, new business
initiatives, investments and operations in foreign jurisdictions, foreign currency fluctuations and
the Company’s prior restatements and the related litigation and investigation by the SEC and the
ongoing inquiry by 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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For additional information please contact:
Business Media:
|
Investors: | |
IMAX Corporation — New York
|
MAX Corporation — New York | |
Ann Sommerlath
|
Heather Anthony | |
212-821-0100
|
212-821-0121 | |
asommerlath@imax.com
|
hanthony@imax.com | |
Sloane & Company — New York |
||
Whit Clay |
||
212-446-1864 |
||
wclay@sloanepr.com |
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