RLJ Entertainment Ups Finance Deal With AMC Networks1 Feb, 2017 By: Erik Gruenwedel
RLJ Entertainment Feb. 1 announced it has amended a credit agreement with AMC Networks to expand a bond provision (“tranche”) from $3 million to $15 million. Last October, AMC gave RLJE a $65 million loan with options to secure majority interest in the distributor.
Miguel Penella, CEO of RLJ Entertainment, said the amended agreement enables the company to repay the subordinated debt, extend the maturity date of the Tranche A Term Loan to June 30, 2019, and modify related financial covenants.
“We are pleased with the continued support from AMC Networks. The refinancing provides us with financial flexibility to focus on growing our digital channels, Acorn TV and UMC, and accelerate content investment,” Penella said.
Indeed, Amazon Channels Jan. 31 touted the exclusive premiere of Acorn TV Original Movie Agatha Christie’s The Witness for the Prosecution, starring Toby Jones (Sherlock), Kim Cattrall (“Sex and the City”) and Andrea Riseborough (Netflix’s “Bloodline”), and streaming premiere of 1980s sketch comedy series “Alfresco,” starring Hugh Laurie and Emma Thompson.
RLJE, formed in 2012 with the merger of Image Entertainment and Acorn Media Group, recently said subscribers for both channels more than doubled year over year in 2016. Acorn TV ended last year with 430,000 subs, up from 195,000 subs at the end of 2015. UMC quadrupled to more than 20,000 subs from about 5,000 in 2015.