Cinedigm Digital flexes $130 million term loan to Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 12 - Cinedigm Digital Cinema Corp. reduced pricing on its roughly $130 million five-year term loan to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

The 1% Libor floor was left unchanged.

The term loan has about 20% amortization per year and a 100% excess cash flow sweep.

Proceeds will be used to reprice about $90 million of existing term loan debt from Libor plus 350 bps with a 1.75% Libor floor while extending the maturity from May 2016, and the $40 million of new money will be used to repay some mezzanine debt.

With the pricing flex, the original issue discount on the new money was revised to 99¾ from 991/2, the source said.

Also, the amendment fee offered to existing lenders was changed to 25 bps from 50 bps, the source added.

Recommitments are due at 3 p.m. ET on Wednesday.

Societe Generale is leading the deal.

Cinedigm is a Morristown, N.J.-based company that converts movie theaters into digital and networked entertainment centers.

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