Cinedigm Pays Down $3.5 Million of Prospect Capital Corp. Term Loan and Extends Maturity of Balance Until March 31, 2022

Rhea-AI Summary

Cinedigm (NASDAQ:CIDM) has extended the maturity date of its term loan to March 31, 2022, while paying down $3.5 million of the principal amount, reducing the debt to $8.5 million. The company's total recourse debt, including a PPP loan, is now under $5 million. These actions are part of Cinedigm's strategy to strengthen its balance sheet and support its streaming asset acquisition efforts, which have included recent acquisitions like The Film Detective and Fandor. This financial maneuvering aims to enhance streaming revenue and profit growth.

Positive

• Loan maturity extended to March 31, 2022.
• $3.5 million paid down on term loan, reducing balance to $8.5 million.
• Total recourse debt now under $5 million, following elimination of Second Lien and Convertible Notes.
• Ongoing strategy to enhance streaming assets with recent acquisitions.

Negative

• None.

Strengthened Balance Sheet Continues to Support Cinedigm's Streaming Asset Roll-up Acquisition Strategy

LOS ANGELES, CA / ACCESSWIRE / March 9, 2021 / Cinedigm (NASDAQ:CIDM) ("Cinedigm" or the "Company"), today announced that on March 4, 2021, Cinedigm DC Holdings, LLC, Access Digital Media, Inc., Access Digital Cinema Phase 2, Corp., Christie/AIX, Inc., Cinedigm Digital Funding I, LLC, and Prospect Capital Corporation entered into Amendment No. 3 to the Term Loan Agreement dated February 28, 2013. Under the Amendment, the maturity date of the loan under the Term Loan Agreement was extended to March 31, 2022. In connection with this Amendment, CDCH paid $3,500,000 to Prospect to reduce the outstanding principal amount of the Loan.

Gary Loffredo, President, Chief Operating Officer and General Counsel, said, "This paydown of our Prospect term loan for our legacy Digital Cinema Equipment business is the latest move in our aggressive efforts to reduce our debt and interest expense. After this paydown of $3.5 million, the loan balance on this debt will be $8.5 million. Total recourse debt for the Company, including the PPP loan, is now under $5 million following the full elimination of our Second Lien and Convertible Notes earlier in this fiscal year. Our balance sheet is stronger than ever and will help support the streaming asset roll-up strategy we have already been successfully executing over the past few months with the acquisitions of The Film Detective, Fandor, Screambox and Foundation TV, all of which will further propel streaming revenue and profit growth."

About Cinedigm Corporation
For more than twenty years, Cinedigm (NASDAQ:CIDM) has led the digital transformation of the entertainment industry. Today, Cinedigm entertains hundreds of millions of consumers around the globe by providing premium content, streaming channels and technology services to the world's largest media, technology and retail companies.

Material Public Information Disclosure
Cinedigm uses its website, press releases, SEC filings, and various social media channels, including Twitter, LinkedIn, Facebook, StockTwits and the Company website as additional means of disclosing public information to investors, the media and others interested in the Company. It is possible that certain information that the Company posts to these aforementioned dissemination channels could be deemed to be material information, and the Company encourages investors, the media and others interested in the Company to review the business and financial information that the Company posts on any of the channels identified above, as such information could be deemed to be material information.

Press Contact for CIDM:
Jill Calcaterra
310-466-5135
jcalcaterra@cinedigm.com

SOURCE: Cinedigm Corp.

View source version on accesswire.com:
https://www.accesswire.com/634209/Cinedigm-Pays-Down-35-Million-of-Prospect-Capital-Corp-Term-Loan-and-Extends-Maturity-of-Balance-Until-March-31-2022

FAQ

What is the significance of Cinedigm's recent loan repayment?

Cinedigm repaid $3.5 million on its loan, improving its balance sheet and financial stability.

What is the new maturity date for Cinedigm's term loan?

The maturity date for Cinedigm's term loan has been extended to March 31, 2022.

How much debt does Cinedigm currently have?

Cinedigm's outstanding term loan balance is now $8.5 million, with total recourse debt under $5 million.

What is Cinedigm's strategy following the loan amendment?

Cinedigm's strategy focuses on acquiring streaming assets to boost revenue and profit growth.

What companies has Cinedigm acquired recently?

Cinedigm has recently acquired The Film Detective, Fandor, Screambox, and Foundation TV.