Digital Cinema Implementation Partners Closes $755 Million Refinancing Transaction
MAHWAH, N.J., May 17, 2013 /PRNewswire/ -- Digital Cinema Implementation Partners, LLC (DCIP) announced today that it has closed on a new $755 million credit facility comprised of an 8-year $680 million term loan B and a 5-year $75 million revolving credit facility. The proceeds from the term loan B were used to prepay existing debt and to pay fees and other transaction related expenses.
"This transaction provides DCIP substantial financial and operating benefits by extending the loan maturities associated with our digital deployment and significantly reducing our cost of debt," said DCIP President and Chief Executive Officer Rich Manzione. "This will be achieved in part through the planned repayment in full of higher interest mezzanine-level notes, with cash on hand and borrowings under the new revolving credit facility."
DCIP is a joint-venture formed by the three leading U.S. theater companies, AMC Entertainment Inc., Cinemark Holdings, Inc. (Cinemark), and Regal Entertainment Group, to replace 35mm projectors in the U.S. with digital projection systems. DCIP has deployed 14,327 digital projection systems in the U.S. as of March 31, 2013. Digital conversion of these exhibitors' existing projection systems is expected to be completed in September 2013.
In addition to its U.S. digital deployment, DCIP actively manages the deployment of over 1,800 digital systems in Canada for Canadian Digital Cinema Partnership, a joint venture between Cineplex Inc. and Empire Theatres Limited, the two largest Canadian theater companies. DCIP has also agreed to manage the digital deployment of approximately 1,300 projection systems across Latin America for Cinemark.
"In addition to our existing digital deployment and management services, we will be looking to expand our operations to include new administrative and software services aimed at streamlining the operations and interactions of exhibitors and distributors, by leveraging the new digital infrastructure," said Manzione.
DCIP engaged Barclays and Credit Suisse as joint lead arrangers and joint bookrunners for the new term loan B facility, with Barclays also serving as administrative agent and Credit Suisse as syndication agent.
About Digital Cinema Implementation Partners
Digital Cinema Implementation Partners, LLC is a joint venture owned equally by exhibition industry leaders AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group, representing more than 15,000 screens in the United States and Canada. Formed in February 2007 to facilitate the roll-out of a digital cinema infrastructure in the United States and Canada, the company is headquartered in Mahwah, N.J. with offices in Minneapolis and Denver.
Cautionary Language Concerning Forward-Looking Statements
The statements contained in this release that are not historical facts are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. These statements include our plans and our expectations regarding our rollout of digital projection equipment and the impact thereof on the moviegoing experience of theatre patrons and on the distribution of movies in digital format the projection of our rollout. DCIP cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of DCIP may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors, including the actual production, installation and quality of digital projection equipment, acceptance thereof by theater patrons and the actual production of movies in digital format and bookings thereof to converted screens. DCIP undertakes no obligation to update any forward-looking statements.
Parris Communications Contact:
SOURCE Digital Cinema Implementation Partners, LLC