Business Context and Reporting Period
This Form 8-K was filed by Access Integrated Technologies, Inc. (not Cineverse Corp.) on September 27, 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: $19.8 million.
- Total Borrowed Under Credit Agreement: $35.5 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 (administrative agent).
Material Changes
This filing represents the third borrowing under the Company's credit agreement. The new drawdown increased the total outstanding debt under the facility to $35.5 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 $19.8 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 for theater locations where C/AIX has 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 total outstanding debt of $35.5 million against the $217 million credit facility limit.
- Confirm the 9.87% interest rate and any potential adjustment mechanisms.
- Review the August 4, 2006 Form 8-K for full material terms of the Credit Agreement.
- Assess the status of master license agreements with theater owners to validate the need for digital cinema system funding.