Cinram Announces Refinancing Plan26 Jan, 2011 By: Chris Tribbey
Cinram has proposed a refinancing and recapitalization plan to its current lenders that would extend the replicator’s credit line through 2013 and have the company reducing its existing term debt from $367 million by $120 million.
“This refinancing and recapitalization transaction is a significant and positive development for Cinram and its stakeholders,” said Cinram CEO Steve Brown. “It represents a reasonable and fair transaction for Cinram, its lenders and its unitholders, and it meets Cinram's previously stated business objectives of improving its capital structure.”
Cinram also announced that once its refinancing plan is completed one of its “major” customers would be close to reaching terms for a new three-year deal. 20th Century Fox Home Entertainment, Lionsgate and Warner Music Group are among Cinram’s key accounts.