Cinedigm Digital offers $40 million new money term loan at 99½

By Sara Rosenberg

New York, Feb. 4 - Cinedigm Digital Cinema Corp. launched its roughly $40 million of new term loan debt on Monday with an original issue discount of 991/2, according to a market source.

Pricing on the new loan, as well as on a repricing of about $90 million of existing term loan debt, is talked at Libor plus 300 basis points with a 1% Libor floor, the source said.

Societe Generale is leading the roughly $130 million five-year term loan.

Basically, the company is raising the $40 million in new money to repay some mezzanine debt and repricing the existing term loan down from Libor plus 350 bps with a 1.75% Libor floor while extending the maturity from May 2016.

The term loan has about 20% amortization per year and a 100% excess cash flow sweep.

Lenders are being offered a 50 bps amendment fee, the source added.

Cinedigm is a Morristown, N.J.-based company that converts movie theaters into digital and networked entertainment centers.

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