BURBANK, Calif., Aug. 16, 2012 /PRNewswire/ -- Point.360 (NASDAQ: PTSX), a leading provider of integrated media management services, today announced that it had entered into financing agreements with Bank of the West (part of the BNP Paribas Group) as follows: (i) a two-year revolving credit facility providing up to $5 million of credit based on 80% of eligible accounts receivable, as defined, and (ii) an equipment lease facility providing up to $1.25 million of financing for the cost of new and already-owned or leased equipment.
The agreements specify interest rates ranging from Libor plus 2.75% to the bank's cost of funds plus 3%, are secured by all of the Company's assets, and contain covenants, terms and conditions typically found in such agreements.
Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "The new financing package establishes a relationship with a major commercial bank, provides added financial resources and flexibility, and will significantly reduce interest costs which were about 8.5% under our previous $3 million line of credit. We are also exploring the possibility of refinancing our two mortgages at today's lower interest 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.