VisionChina Media Announces Extension of Revolving Credit Facility with China Construction Bank
BEIJING, Jan. 16, 2014 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home digital television advertising networks on mass transportation systems, today announced that its consolidated variable interest entity, VisionChina Media Group Co., Ltd. ("VisionChina Media Group" or "Borrower"), has been granted an extension of its existing secured revolving credit facility (the "Credit") from China Construction Bank (Shenzhen branch) (the "Bank") until January 9, 2015. The total amount of the renewed credit facility is RMB 130.0 million (approximately US$21.5 million).
The Credit, which was originally scheduled to expire on January 13, 2014, is secured by the accounts receivable of VisionChina Media Group and carries an interest rate in a range between 95% to 160% of the People's Bank of China benchmark interest rate ("Benchmark Rate"). The interest rate of each borrowing via the Credit is determined at the time of each draw-down. The Credit is available for general corporate purposes and working capital, and is prohibited for use in repayment of merger consideration regarding the acquisition of Digital Media Group Company Limited or its related litigation settlement. The Credit contains a restrictive financial covenant that requires Visions China Media Group to maintain a leverage ratio of no higher than 65%. Violation of this financial covenant could result in a default under the Credit, which would permit the Bank to terminate this revolving credit facility and require immediate repayment from the Borrower of any outstanding loans advanced. As of the date of this press release, VisionChina Media Group had total borrowings of RMB 120.0 million via the Credit at an interest rate of 6.9%, representing 115% of Benchmark Rate.
Stanley Wang, VisionChina Media's chief financial officer, commented, "The extended credit facility will continue to provide adequate liquidity to our company. We believe our existing available banking credit facilities are sufficient to support our current business operations and future development."
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising network on mass transportation systems, including buses and subways. As of September 30, 2013, VisionChina Media's advertising network included 110,383 digital television displays on mass transportation systems in 19 of China's economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as secured by exclusive agency agreements or joint venture contract. VisionChina Media has the ability to deliver real-time, location-specific broadcasting, including news, stock quotes, weather and traffic reports, and other entertainment programming. For more information, please visit http://www.visionchina.cn.
For investor and media inquiries, please contact:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
SOURCE VisionChina Media Inc.