RealD gets $330 million five-year term loan, repays existing facility

By Tali Rackner

Norfolk, Va., March 24 – RealD Inc. entered into a $330 million five-year term loan facility on Tuesday in connection with its merger with Rhombus Cinema Holdings, LP, according to an 8-K filing with the Securities and Exchange Commission.

Highbridge Principal Strategies, LLC is the administrative agent and collateral agent.

Loans under the credit agreement bear interest at Libor plus 750 basis points with a 1% Libor floor.

The loans are subject to customary representations, warranties and ongoing affirmative and negative covenants and events of default. The negative covenants include, among other things, limitations on debt, liens, asset sales, mergers and acquisitions, investments, transactions with affiliates, dividends and other restricted payments and sale and leaseback transactions of the company or any of its subsidiaries.

The credit agreement also requires the company to maintain a maximum leverage ratio.

The agreement matures on March 22. 2021.

Also in connection with the merger, RealD repaid all amounts outstanding under its existing senior secured credit facility on Tuesday with City National Bank, as administrative agent.

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

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