MORRISTOWN, NJ -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM) (formerly AccessIT), a pioneer in the digital cinema industry, today announced that its Phase 1 subsidiary, Christie/AIX, Inc. ("C/AIX"), has entered into an amendment to its senior credit facility with GE Commercial Finance.
The amendment significantly relaxes the financial covenant ratios that C/AIX is required to meet every quarter through the maturity of the loan in 2013. In addition, the new arrangement allows C/AIX to pay approximately $5 million in cash to its parent company, Cinedigm, as well as increase its ability to pay annual fees to Cinedigm. Reflecting the current market conditions, the amendment increases the interest rate on the credit facility from 4.5% to 6% above LIBOR and sets a LIBOR floor of 2.5%. C/AIX will pay a 0.5% amendment fee on the outstanding balance of $183.9 million.
Bud Mayo, Chief Executive Officer of Cinedigm, stated, "This amendment demonstrates the strength of our relationship with GE and its confidence in Cinedigm's leading industry position, as well as our ability to execute on our business plan. With this amendment in place, we have improved our liquidity and our ability to grow across all divisions of Cinedigm. We expect C/AIX to remain well within its financial covenant requirements through the loan maturity in 2013. We thank GE and its co-lenders for their ongoing support as we continue the rollout of digital cinema systems to theatres nationwide."