VisionChina Media Announces Extension of Revolving Credit Facility with China
BEIJING, Jan. 16, 2014
BEIJING, Jan. 16, 2014 /PRNewswire/ -- VisionChina Media Inc. ("VisionChina
Media" or the "Company") (Nasdaq: VISN), one of China's largest out-of-home
digital television advertising networks on mass transportation systems, today
announced that its consolidated variable interest entity, VisionChina Media
Group Co., Ltd. ("VisionChina Media Group" or "Borrower"), has been granted an
extension of its existing secured revolving credit facility (the "Credit")
from China Construction Bank (Shenzhen branch) (the "Bank") until January 9,
2015. The total amount of the renewed credit facility is RMB 130.0 million
(approximately US$21.5 million).
The Credit, which was originally scheduled to expire on January 13, 2014, is
secured by the accounts receivable of VisionChina Media Group and carries an
interest rate in a range between 95% to 160% of the People's Bank of China
benchmark interest rate ("Benchmark Rate"). The interest rate of each
borrowing via the Credit is determined at the time of each draw-down. The
Credit is available for general corporate purposes and working capital, and is
prohibited for use in repayment of merger consideration regarding the
acquisition of Digital Media Group Company Limited or its related litigation
settlement. The Credit contains a restrictive financial covenant that requires
Visions China Media Group to maintain a leverage ratio of no higher than 65%.
Violation of this financial covenant could result in a default under the
Credit, which would permit the Bank to terminate this revolving credit
facility and require immediate repayment from the Borrower of any outstanding
loans advanced. As of the date of this press release, VisionChina Media Group
had total borrowings of RMB 120.0 million via the Credit at an interest rate
of 6.9%, representing 115% of Benchmark Rate.
Stanley Wang, VisionChina Media's chief financial officer, commented, "The
extended credit facility will continue to provide adequate liquidity to our
company. We believe our existing available banking credit facilities are
sufficient to support our current business operations and future development."
About VisionChina Media Inc.
VisionChina Media Inc. (Nasdaq: VISN) operates an out-of-home advertising
network on mass transportation systems, including buses and subways. As of
September 30, 2013, VisionChina Media's advertising network included 110,383
digital television displays on mass transportation systems in 19 of China's
economically prosperous cities, including Beijing, Guangzhou and Shenzhen, as
secured by exclusive agency agreements or joint venture contract. VisionChina
Media has the ability to deliver real-time, location-specific broadcasting,
including news, stock quotes, weather and traffic reports, and other
entertainment programming. For more information, please visit
For investor and media inquiries, please contact:
Ms. Shuning Yi
Investor Relations Department
VisionChina Media Inc.
Mr. Colin Wang
Investor Relations Director
VisionChina Media Inc.
Tel: +86 135-1001-0107
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
SOURCE VisionChina Media Inc.
Press spacebar to pause and continue. Press esc to stop.