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Quotes & Info
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| RDI > SEC Filings for RDI > Form 8-K on 6-Nov-2012 | All Recent SEC Filings |
6-Nov-2012
Entry into a Material Definitive Agreement, Financial Statements and Ex
Bank of America Credit Facility
On October 31, 2012, we entered into a series of agreements with the Bank of America (or its affiliates) refinancing our U.S. cinema borrowings, putting into place an equipment lease facility to finance the acquisition of digital projectors for our U.S. cinemas, and increasing and extending our unsecured parent company line of credit.
Specifically, we replaced our GE Capital Term Loan in the amount of $27.7 million with a new credit facility with the Bank of America (the "BofA Credit Facility") in the amount of $30.0 million. This new revolving facility has a five-year term, amortizing at $3.0 million per year, commencing December 31, 2013. This loan to Consolidated Entertainment, LLC (formerly Consolidated Entertainment, Inc.) is secured by the assets of Consolidated Entertainment, LLC (comprising most of our cinemas in the United States) and has an interest rate of between 2.50% and 3.00% above LIBOR or, at our discretion, 1.50% to 2.00% above the Bank of America based rate. In our view, the covenants of the BofA Credit Facility, which include a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio, compare favorably to those under the prior GE Capital Term Loan.
We entered into a master operating equipment lease financing agreement with Banc of America Leasing & Capital, LLC to finance the acquisition of up to $15.5 million in digital projection equipment for our U.S. cinema operations, with the intent to complete the implementation by the end of this year.
We also increased and extended our existing Reading International, Inc. line of credit from $3.0 million to $5.0 million and from August 1, 2014 until October 31, 2017.
99.1 Credit Agreement
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