TORONTO, March 30 /PRNewswire-FirstCall/ -- Cinram International Income Fund (TSX: CRW.UN), the world's largest provider of pre-recorded multimedia products and related logistics services, announced today that its lenders have approved an amendment to its subsidiaries' senior secured credit facility to, among other things, permit Cinram to use up to US$150 million to repurchase term advances outstanding under the senior secured credit facility at prices below par through one or more "modified Dutch" auctions during a one-year period commencing on the effective date of the amendment, expected to be March 23, 2009. The amendment does not obligate Cinram to make any such repurchases and there can be no assurance that Cinram will repurchase any term advances. In addition, Cinram agreed (i) to make a US$35 million prepayment at par of term advances on the effective date of the amendment. (ii) to make quarterly prepayments at par of US $10 million commencing with the second quarter of 2009. (iii) to reduce the revolving credit commitment under the senior credit facility by US$50 million on the date of the amendment, and (iv) not to pay any unitholder distributions for the balance of the term of the facility, subject to certain limited exceptions. As of December 31, 2008, Cinram had $647 million of term advances outstanding under its credit facility.
"We believe that this amendment to the senior credit agreement will assist the Company in its continuing efforts to deleverage our balance sheet," said John Bell, Cinram's Chief Financial Officer.
Execution and delivery of the amendment is subject to customary conditions. If the amendment to the credit agreement is executed and becomes effective, Cinram will file a copy of the amendment and related documents on http://www.sedar.com/. Cinram's acquisition of term advances would, under the terms of the amendment and related documents, be subject to certain other restrictions, as will be set forth in the amendment agreement documents.
About Cinram
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is the world's largest provider of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram now also provides distribution and logistics services to the telecommunications industry in North America and Europe through its wireless subsidiaries. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at http://www.cinram.com/.
Certain statements included in this release contain words such as "could", "expects", 'expectations", "may", "anticipates", "believes", "intends", "estimates" and "plans" (and similar expressions) and constitute "forward-looking statements" within the meaning of applicable securities law. These statements are based on Cinram's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Cinram operates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which are difficult to predict and may cause the actual results, performance or achievements of the Fund ,outcomes, or results of the multimedia duplication/ replication industry, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia duplication/replication industry conditions and capacity; the ability of the Fund to implement its business strategy, including having the cash resources necessary to do so; a shortage of product due to labour disruptions, the Fund's ability to retain major customers; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with Canadian securities commissions. Unless otherwise required by applicable securities laws, Cinram disclaims any intention or obligation to update or revise any forward-looking statements.
Cinram International Income Fund
CONTACT: John Bell, Tel: (416) 332-2902, johnbell@cinram.com
