Point.360 Announces $8.6 Million Of New Mortgage Financing
BURBANK, Calif., Sept. 26, 2012 /PRNewswire/ -- Point.360 (NASDAQ: PTSX), a leading provider of integrated media management services, today announced that it had entered into two term loan agreements with Bank of the West (part of the BNP Paribas Group) to refinance mortgages on its Hollywood Way and Vine real estate. The new mortgages provide for interest at LIBOR plus 3% (currently about 3.25%) and are payable based on a 25-year amortization due in 10 years. The Company received a $337,000 discount for the early payoff of the prior Hollywood Way loan which will be recorded as other income in the quarter ending September 30, 2012. The Company will also write off approximately $90,000 of deferred financing costs in the quarter associated with the prior Hollywood Way mortgage.
Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "Finalizing the new term loans completes a total refinancing package of $14.8 million. While we have no amounts currently outstanding under the previously completed revolving and equipment loan facilities, annual interest savings on the two mortgages will be approximately $350,000 at today's rates."
Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With locations in greater Los Angeles, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide, serving studios, independent producers, corporations, non-profit organizations and governmental and creative agencies. Point.360 provides the services necessary to edit, master, reformat and archive clients' audio and video content, including television programming, feature films and movie trailers. Point.360's interconnected facilities provide service coverage to all major U.S. media centers. The Company also rents and sells DVDs and video games directly to consumers through its Movie>Q retail stores. See www.Point360.com and www.MovieQ.com.
Certain statements in Point.360 press releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding potential availability of additional financing. Please also refer to the risk factors described in the Company's SEC filings, including its annual reports on Form 10-K. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from those expected or anticipated in the forward-looking statements. The Company has no responsibility to update forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.