Business Context and Reporting Period
This Form 8-K was filed by Access Integrated Technologies, Inc. (referred to in metadata as Cineverse Corp.) on November 3, 2006. The report details a specific financial event involving the company's indirectly wholly-owned subsidiary, Christie/AIX, Inc. (C/AIX).
Key Financial Metrics
- New Borrowing: $8.9 million.
- Total Borrowed Under Credit Agreement: $44.4 million.
- Credit Facility Size: $217 million (dated August 1, 2006, amended August 30, 2006).
- Interest Rate: 9.87% per annum (subject to adjustment).
- Lender: General Electric Capital Corporation (as administrative agent).
Material Changes
The primary material change is the fourth borrowing under the existing credit agreement, increasing the total outstanding debt to $44.4 million. The filing does not provide comparative financial data for prior periods regarding revenue, profit, or cash flow.
Use of Proceeds and Management Commentary
Management states the proceeds will be used primarily to fund up to 70% of the aggregate purchase price for digital cinema systems. This includes costs associated with acquisition, receipt, delivery, construction, and installation for theater locations with executed master license agreements. Remaining funds are designated for corporate purposes, including transaction fees and expenses related to the Credit Agreement.
Investor Verification Checklist
- Verify the total outstanding debt of $44.4 million against the company's most recent balance sheet.
- Confirm the interest rate of 9.87% and any potential adjustment mechanisms in the full Credit Agreement.
- Review the August 4, 2006 Form 8-K for the complete material terms of the $217 million Credit Agreement.
- Assess the status of master license agreements with theater owners to validate the deployment of funds for digital cinema systems.