On January 25, 2011, Cinram International Income Fund (Public, TSX: CRW.UN) (together with its subsidiaries where applicable, "Cinram") announced a proposed refinancing and recapitalization transaction (the refinancing and recapitalization) with its current lenders. In addition, Cinram has agreed to the material terms that will form the basis for further agreements with a major customer for a term of three years, subject to completion of the Refinancing and Recapitalization.
A majority of the Cinram’s unitholders have consented in writing to the refinancing and recapitalization, including the issuance of new equity units and warrants. Some of the key elements of the changes to Cinram’s capital structure that would result from the proposed transactions are:
- Amendment and extension of Cinram’s senior secured credit facility (the Credit Facility) to December 31, 2013.
- Reduction in the amount of term debt outstanding and revolving commitments available under the amended Credit Facility.
- An option for Cinram to raise new equity proceeds to repay the mandatorily exchangeable secured debt through the end of 2011.
- The issuance of up to 9.85 million Cinram units to lenders that consent to the refinancing and recapitalization by February 10, 2011.
- The issuance of warrants to acquire 13 million Cinram units.
Goldman, Sachs & Co. is Cinram's financial advisor and will assist Cinram with the refinancing and recapitalization.
Cinram, headquartered in Toronto, is an unincorporated, open-ended, limited purpose trust. Further information about this transaction is found on the website of Cinram.