RealD gets restated $50 million revolver, $50 million delayed-draw loan

By Marisa Wong

Madison, Wis., July 3 – RealD Inc. entered into an amended and restated credit agreement on June 26 for an up to $50 million revolving credit facility and an up to $50 million delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

City National Bank is the administrative agent and letter-of-credit issuer, U.S. Bank NA is the syndication agent, and HSBC USA, NA is the documentation agent.

The credit agreement amends and restates the company’s credit agreement dated April 19, 2012.

The restated revolver includes a letter-of-credit sub-facility. In addition, the company may request up to an additional $25 million of commitments under the revolver.

Loans under the restated credit agreement bear interest at Libor plus a margin of 225 basis points to 275 bps, depending on the company’s leverage ratio.

The company will also pay a commitment fee on unused portions of the facility. The fee for the revolver varies between 25 bps and 37.5 bps, depending on the percentage of the revolver in use, and the fee for the unused term loan is 37.5 bps.

There is a letter-of-credit fee equal to 225 bps to 275 bps, depending on the company’s leverage ratio.

In addition, the credit agreement requires the company to comply with financial covenants, including a minimum fixed-charge coverage ratio and a maximum leverage ratio.

The revolver matures on June 26, 2017, and the term loan matures on June 26, 2018.

Beverly Hills, Calif.-based RealD is a licensor of 3-D technologies.

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