Wells Fargo, EDC to Expand IMAX Credit Facility
IMAX Corporation (NYSE:IMAX) (TSX:IMX) has announced it has received a commitment letter from Wells Fargo Capital Finance Corporation Canada (Wells Fargo Capital Finance), part of Wells Fargo & Company (NYSE:WFC), pursuant to which Wells Fargo Capital Finance has agreed to expand its senior secured credit facility to up to $110 million, replacing its previous $75 million facility. The facility expansion will include the participation of Export Development Canada (EDC) for $55 million. Upon execution of definitive documents, the amended credit facility will consist of up to a $60 million revolving term loan with no scheduled repayments and up to a $50 million asset-based revolving loan.
Subject to completion, the amended credit facility will mature on October 31, 2015. The previous credit facility was to mature in October of 2013. Consistent with the Company’s strong credit statistics, borrowings under the credit facility will bear interest at the reduced spread of 2.00% above LIBOR, versus previous interest rates of LIBOR plus 3.75% and 2.75% for the former term loan and revolving asset-based loan, respectively.
“Upon completion, this newly expanded and extended credit agreement reflects the positive growth trends in our Company, and we are pleased to continue our strong relationship with Wells Fargo Capital Finance and Export Development Canada,” said Richard L. Gelfond, CEO IMAX Corporation.
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