TORONTO, Jan. 6 /PRNewswire-FirstCall/ - Cinram International Income Fund (TSX: CRW.UN) announced today that it has completed its program of repurchasing its senior debt, at amounts below par, pursuant to the previously disclosed amendment to its subsidiaries' senior secured credit facility approved March 30, 2009 having maximized the buyback opportunity pursuant to the terms of the amendment.
Through nine separate auctions from April 1, 2009 to December 16, 2009 the Company acquired an aggregate of US$169.7 million of its senior debt for a net cost of US$129.8 million. The net discount earned of US$39.9 million, less transaction costs, will be recorded in the Fund's consolidated statement of income for the year ended December 31, 2009. As a result of those repurchases of debt and other repayments of principal made during the year, the Fund reduced its total senior secured credit facility by over US$251 million during the year ended December 31, 2009.
"We are pleased to have had the opportunity during 2009 to make significant headway in our strategic objective of reducing the overall debt levels" commented John Bell, Chief Financial Officer.
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is the world's largest provider of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiary. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at www.cinram.com.
SOURCE Cinram International Income Fund