Business Context and Reporting Period
This Form 8-K was filed by Access Integrated Technologies, Inc. (not Cineverse Corp.) on September 12, 2006. The report details a financing event involving Christie/AIX, Inc. (C/AIX), an indirectly wholly-owned subsidiary of the Company.
Key Financial Metrics
- New Borrowing: $5.7 million.
- Total Borrowed Under Credit Agreement: $15.7 million.
- Credit Facility Size: $217 million (dated August 1, 2006, amended August 30, 2006).
- Interest Rate: 9.92% per annum (subject to adjustment).
- Lender: General Electric Capital Corporation (as administrative agent).
Material Changes
The Company executed its second borrowing under the existing credit agreement. This transaction increased the total outstanding debt under the facility from $10.0 million to $15.7 million.
Use of Proceeds and Management Commentary
Proceeds from the $5.7 million borrowing will be used primarily to fund up to 70% of the aggregate purchase price, including costs, fees, and expenses associated with the acquisition, receipt, delivery, construction, and installation of digital cinema systems. These systems are for theater locations where C/AIX and theater owners have executed master license agreements. Remaining funds will cover transaction fees and expenses related to the Credit Agreement and other corporate purposes.
Investor Verification Checklist
- Verify the identity of the registrant (Access Integrated Technologies, Inc.) versus the requested company name (Cineverse Corp.).
- Confirm the total outstanding debt balance of $15.7 million against the $217 million facility limit.
- Review the August 4, 2006 Form 8-K for the full material terms of the Credit Agreement.
- Assess the impact of the 9.92% interest rate on future cash flow obligations.