Business Context and Reporting Period
This Form 8-K was filed by Access Integrated Technologies, Inc. (not Cineverse Corp.) on November 28, 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: $10.3 million.
- Total Borrowed Under Credit Agreement: $70.9 million.
- Credit Facility Size: $217 million.
- Interest Rate: 9.87% per annum (subject to adjustment).
- Lender: General Electric Capital Corporation (as administrative agent).
Material Changes
The Company executed its sixth borrowing under its existing credit agreement. This transaction increased the total outstanding debt under the facility to $70.9 million. The filing does not provide comparative financial data for prior periods regarding revenue, profit, or cash flow.
Use of Proceeds and Management Commentary
Proceeds from the $10.3 million borrowing 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 at theater locations where master license agreements have been executed. Remaining funds may be used for other corporate purposes, including transaction fees and expenses related to the Credit Agreement.
Investor Verification Checklist
- Verify the total outstanding debt balance of $70.9 million against the $217 million credit limit.
- Confirm the interest rate of 9.87% and any potential adjustment mechanisms.
- Review the August 4, 2006 Form 8-K for the full material terms of the Credit Agreement.
- Assess the status of master license agreements with theater owners to validate the deployment of funds for digital cinema systems.