Cinedigm Digital Funding completes $77.5 million credit facility

By Sara Rosenberg

New York, Oct. 24 - Cinedigm Digital Funding 2 LLC closed on a new $77.5 million credit facility due Oct. 15, 2017, according to an 8-K filed with the Securities and Exchange Commission on Monday.

SG America Securities LLC, ING Capital LLC and Natixis acted as the joint lead arrangers on the deal that was completed on Oct. 18, with SG and Natixis the bookrunners.

The facility consists of a $2.5 million revolver and up to $75 million of term loans, and pricing on the tranches is Libor plus 450 basis points.

Proceeds from the term loans and a $23 million sale and leaseback agreement will be used to fund part of the purchase price for digital cinema projection systems, and the revolver will be used for working capital.

Cinedigm Digital Funding 2 is an indirectly wholly owned, special purpose subsidiary of Cinedigm Digital Cinema Corp., a Morristown, N.J.-based provider of technology services, financial advice and guidance, and software services to content owners and distributors, and movie exhibitors.

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