Cinedigm, a company that specializes in digital distribution of films and TV series to platforms and services such as Netflix, Amazon and Apple iTunes, said it has completed an $18 million expanded line of credit financing with East West Bank.
Cinedigm, which also works with MVPDs such as Comcast, Dish Network and AT&T/DirecTV, said it will tap into that line of credit for a range of purposes, including the acquisition and/or distribution of content, the payment of interest and fees, working capital needs and general corporate purposes, and repayment of the company’s existing revolving credit facility.
The new credit facility has a maturity date of March 31, 2020 which may be extended for two successive periods of one year each at the sole discretion of East West Bank, so long as certain conditions are met, Cinedigm said.
The new line of credit also comes a few months after Hong Kong-based Bison Capital acquired the majority of Cinedigm’s outstanding Class A Common Stock.
“We are pleased to have closed this expanded credit facility, further strengthening our balance sheet and adding working capital to support our key business initiatives,” Chris McGurk, Cinedigm’s chairman and CEO, said in a statement.
“The completion of this new and expanded $19 million credit facility with East West Bank is particularly timely and important given our new content distribution and OTT channel initiatives in China and the U.S. spurred by the recent majority investment in Cinedigm by Bison Capital, a leading Chinese investment company,” added Cinedigm CFO Jeffrey Edell.
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