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New Issue: Access Integrated Technologies completes $55 million private placement of notes with stock
By LLuvia Mares
New York, Aug. 28 - Access Integrated Technologies, Inc. announced Tuesday it closed a $55 million private placement of 10% senior unsecured notes with an equity kicker.
The three-year notes may be extended for up to six months at the company's discretion.
The company also issued 715,000 shares of class A common stock paid as an equity kicker for the first year.
Starting after Dec. 31, 2008 the company will issue common stock as an equity kicker at a rate between 2.4 and 4.0 shares per $1,000 principal value of notes paid quarterly.
The company may opt to prepay the notes in whole or part at anytime after the first year. Additional payments and interest on the notes can be paid in cash or shares of class A common stock.
Access Integrated said it sold the deal to a small group of institutional investors.
Proceeds will be used to redeem the existing $22 million of one-year senior notes issued in October 2006, for expansion of the company's digital cinema rollout plan, to retire the $6 million bank loan at the company's advertising and creative services division, for working capital and other general corporate purposes.
Morristown, N.J.-based Access Integrated Technologies provides networked digital cinema systems to theater operators.
Issuer: Access Integrated Technologies, Inc.
Issue: Senior unsecured notes
Amount: $55 million
Maturity: Three years but extendable by up to six months
Coupon: 10%
Shares: 715,000, payable quarterly at between 2.4 and 4 per $1,000 principal amount
Warrants: No
Announcement date: Aug. 28
Stock symbol: Nasdaq: AIXD
Stock price: $6.56 at close Aug. 27
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