Image Completes $17M Financing Deal31 Aug, 2006 By: Erik Gruenwedel
Image Entertainment completed a $17 million financing deal with Ramius Capital Group, LLC, a New York-based institutional investor.
Under terms of the deal, the five-year note is convertible into 4 million shares of Image common stock at a fixed price of $4.25 per share. The company will pay 7.87% interest annually on the amount.
Chatsworth, Calif.-based Image (whose stock closed Aug. 31 at $3.64 per share) said it would use the funds to pay off its Wells Fargo revolving credit line and help finance its recently announced distribution deal with Relativity Media.