Cinedigm Digital Cinema to get up to $86 million credit facility

By Sara Rosenberg

New York, Nov. 12 - Cinedigm Digital Cinema Corp.'s non-recourse Phase 2 subsidiary has received a commitment for a $75 million senior credit facility that can be expanded to $86 million through syndication, according to a news release.

The facility is expected to be syndicated through one-on-one calls. No formal bank meeting is currently anticipated, a market source told Prospect News.

Societe Generale and Natixis are the lead banks on the deal.

The facility consists of a minimal revolver, and the rest is term loan debt, the source said, adding that specifics on structure are not yet available.

In addition, the company has received a commitment from Macquarie Equipment Finance for up to $23 million of junior capital.

Proceeds will be used to support up to 2,100 digital cinema system conversions.

Closing is targeted for late this year with deployments beginning in the first quarter of 2011.

Cinedigm is a Morristown, N.J.-based company that transforms movie theaters into digital and networked entertainment centers.

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