LOS ANGELES--(BUSINESS WIRE)--Reading International, Inc. (NASDAQ:RDI) announced today the signing of a new $55.0 million credit facility with Bank of America (“BofA”) and a postponement in the retirement date of its CFO, Andrzej Matyczynski.
On November 28, 2014 we refinanced our existing $35.0 million ($29.8 outstanding) term loan with BofA. The new facility, a $55.0 million revolving credit facility, includes a $5.0 million sublimit for the issuance of standby letters of credit and a $1.0 million sublimit for swingline loans. The proceeds of the facility will be used (a) to refinance the existing BofA facility and (b) for general corporate purposes.
The facility is with our wholly owned subsidiary Consolidated Amusements Holdings LLC (“CAHLLC”) but does allow for the use of up to $27.0 million of the facility to finance our other domestic activities. CAHLLC holds the majority of our domestic leased cinemas, and it has pledged these in support of this facility. The facility has a 5-year term, at which time all amounts outstanding are due and payable.
Interest is based on LIBOR plus a variable margin of between 3.0% and 2.5%. Any unused portion of the facility carries an annual commitment fee of between 0.3% and 0.2%. Financial covenants are in line with usual and customary covenants for business loans of this nature.
In addition, further to an agreement signed on November 26, 2014, Mr. Matyczynski has agreed to postpone his retirement and to continue to serve as Chief Financial Officer until June 01, 2015 on essentially the same terms as he is currently employed by us. Thereafter, Mr. Matyczynski will continue to be available to us on a consulting basis, to further assist in maintaining continuity in the chief financial officer function.
About Reading International, Inc.
Reading International (http://www.readingrdi.com) is in the business of owning and operating cinemas and developing, owning and operating real estate assets. Our business consists primarily of:
- the development, ownership and operation of multiplex cinemas in the United States, Australia and New Zealand; and
- the development, ownership, and operation of retail and commercial real estate in Australia, New Zealand, and the United States, including entertainment-themed retail centers (“ETRC”) in Australia and New Zealand and live theater assets in Manhattan and Chicago in the United States.
Reading manages its worldwide business under various different brands:
in the United States, under the
- Reading brand (http://www.readingcinemasus.com);
- Angelika Film Center brand (http://www.angelikafilmcenter.com);
- Consolidated Theatres brand (http://www.consolidatedtheatres.com);
- City Cinemas brand (http://www.citycinemas.com);
- Beekman Theatre brand (http://www.beekmantheatre.com);
- The Paris Theatre brand (http://www.theparistheatre.com);
- Liberty Theatres brand (http://libertytheatresusa.com/); and
- Village East Cinema brand (http://villageeastcinema.com)
- in Australia, under the
in New Zealand, under the
- Reading brand (http://www.readingcinemas.co.nz);
- Rialto brand (http://www.rialto.co.nz);
- Reading Properties brand (http://readingproperties.co.nz);
- Courtenay Central brand (http://www.readingcourtenay.co.nz);
- Steer n’ Beer restaurant brand (http://steernbeer.co.nz); and
- Taupo Motel brand (http://www.sailstaupo.co.nz)