Imax Corp., a maker of giant-screen theater systems, obtained a $200 million bank loan to replace a $110 million credit pact coming due in October 2015.
Wells Fargo & Co. led the transaction, which will expire in February 2018 and pay interest at 1.5 percentage points to 2 percentage points more than the London interbank offered rate, depending on leverage, the company said in a statement today distributed by PR Newswire. Libor, a rate banks say they can borrow in dollars from each other, is fixed at 0.3 percent today.
“This new facility, coupled with the recurring cash generated by our business, will provide us with enhanced flexibility as we pursue our strategic initiatives and continue the global expansion of our business,” Richard Gelfond, chief executive officer, said in the statement.
The new agreement allows Imax to undertake as much as $150 million in stock buybacks and dividends if certain conditions are met, according to the statement.