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Cinedigm Gets $195 Million in Refinancing

1 Mar, 2013 By: Erik Gruenwedel

Cinedigm Digital Cinema Corp. March 1 said it secured $195 million in consolidated credit facilities enabling it to refinance two existing $190 million loans.

Los Angeles-based CDC distributes independent movies and TV shows via 11,600 digital theatrical screens with 269 exhibition partners, DVD and Blu-ray Disc, electronic sellthrough, and transactional and subscription VOD. The company’s content library features more than 18,943 movies and television episodes. Recent release The Invisible War, about rape in the military, was nominated for an Oscar in the Best Feature Documentary category.

Last year, it acquired independent home entertainment distributor New Video.

These new credit facilities, which include reduced borrowing costs, are attributable to Cinedigm’s digital screen business and not its software and content businesses, which is a positive for the company’s move into content distribution, according to Eric Wold, analyst with B. Riley Caris in Los Angeles.

“This will reduce annual interest expense by more than $5 million, which will improve earnings and allow for the debt to be repaid faster,” Wold said in a note.

Indeed, Moody’s Investor Service upgraded Cinedigm’s debt following the refinancing.

“I continue to believe that Cinedigm is a very misunderstood story with significant growth prospects as they evolved from just being involved in digital deployments into a major player in the distribution of indie films and alternative content,” Wold wrote.

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