Cinedigm Announces Another Accretive Convertible Debt Exchange to Further Strengthen Balance Sheet
February 21 2017 - 8:00AM
Business Wire
Cinedigm Corp. (NASDAQ: CIDM) (the “Company”) today
announced that it has executed another accretive financial exchange
transaction as part of its overall strategy to further strengthen
its balance sheet.
On February 17, 2017, Cinedigm entered into an exchange
agreement in which the Company agreed to issue 675,000 shares of
its Class A common stock and notes in the principal amount of
$2,100,000 pursuant to the Company’s Second Lien Loan
Agreement entered into in July 2016 in exchange for $6,000,000 of
the Company’s 5.5% Convertible Notes, saving $172,500 per year in
cash interest expense.
This exchange transaction follows the accretive exchange earlier
this month of $4,000,000 of Convertible Notes for common stock and
warrants, saving $115,000 per year in interest expense.
Additionally, in December, 2016, the Company entered into an
exchange agreement for another $3,429,000 of the
Company’s Convertible Notes for common stock and warrants, saving
$188,595 per year in cash interest expense.
In total, through these three accretive transactions, the
Company has now retired $13,429,000 of its Convertible
Notes or approximately 21% of the total Notes balance, saving
$476,095 in annual cash interest expense.
“These accretive exchange transactions continue to strengthen
our balance sheet and set up our operations for enhanced
profitability,” said Chris McGurk, Cinedigm’s Chairman and CEO. “We
continue to make progress in lining up additional debt exchange
opportunities.”
About Cinedigm
Cinedigm is a leading independent content distributor in the
United States, with direct relationships with thousands of physical
retail storefronts and digital platforms, including Wal-Mart,
Target, iTunes, Netflix, and Amazon, as well as the national Video
on Demand platform on cable television.
Additionally, given Cinedigm’s infrastructure, technology,
content and distribution expertise, the Company has rapidly become
a leader in the quickly evolving over-the-top digital network
business. Cinedigm’s first channel, DOCURAMA, launched in May 2014,
and is currently available on iOS, Roku, Xbox and Samsung, with
additional platforms currently being rolled out. Cinedigm launched
CONtv, a Comic Con branded channel, on March 3, 2015. The Company’s
third OTT channel, DOVE CHANNEL, launched on September 15, 2015 and
is a digital streaming subscription service targeted to families
and kids seeking high quality and family friendly content approved
by Dove Foundation.
Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of
Cinedigm Corp. www.cinedigm.com. [CIDM-F]
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version on businesswire.com: http://www.businesswire.com/news/home/20170221005314/en/
CinedigmJill Newhouse Calcaterra,
310-466-5135jcalcaterra@cinedigm.com
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