Cinedigm reduced total debt by $24.4 million or 47.4% and annual interest expense by 37% or $1.6 million from December 31, 2019

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In Latest Debt Reduction Measures, Company Completes Second Lien Note Exchanges to Reduce Debt by a Total of $1.6 Million

LOS ANGELES, Calif./ACCESSWIRE/December 7, 2020/ Cinedigm (NASDAQ:CIDM) announced today that the Company has entered into swap agreements with certain noteholders pursuant to its subordinated loan agreement dated July 14, 2016 between the Company, the lenders parties thereto, and Cortland Capital Market Services LLC, as agent. Pursuant to the exchange agreements, the Company issued an aggregate of 2,776,282 Class A common shares in exchange for an aggregate of $1,386,106.91 principal amount of Second Lien Notes. Exchanged second privilege tickets were immediately cancelled. The exchange was consummated on December 4, 2020. In a separate exchange with another holder of second lien notes, on November 19, 2020, the Company issued 452,499 common shares in exchange for a principal amount of 247,108.42 $ of second privilege tickets. To date, the remaining second lien note balance is approximately $5.96 million, down $5.32 million or 47% from the original second lien note balance of $11.28 million dollars, due to the company’s aggressive efforts to reduce debt and interest costs.

This reduction in second lien loans is the latest step in Cinedigm’s initiative to significantly reduce its debt and interest costs. Since December 31, 2019, the Company has reduced its overall debt by $24.4 million or 47.4% and its annual interest expense by 37% or $1.6 million. During this period, the Company converted $15 million into notes convertible into shares at $1.50 per share, reduced subordinated loans by $8.11 million to $5.96 million, representing a reduced by 27% or $2.15 million, reduced our asset-based revolving loan by $8.9 million or 56% to $7 million, and reduced our legacy cinema equipment business debt by $523,000 without recourse to reach a current balance of $12 million.

“We have worked diligently to reduce our debt and annual interest costs and this further reduction in our Second Lien Note balance is another very positive step in that process and an indication of our commitment to continually strengthen our balance sheet.” , said Gary Loffredo, Chief Operating Officer of Cinedigm. “During the remainder of this year, we will continue to aggressively pursue more opportunities to further reduce our second lien and other debt balances.”

ABOUT CINEDIGM

For more than twenty years, Cinedigm (NASDAQ: CIDM) has led the digital transformation of the entertainment industry. Today, Cinedigm entertains hundreds of millions of consumers around the world by providing premium content, streaming channels and technology services to the world’s leading media, technology and retail companies. For more information, visit http://www.cinedigm.com/.

Cinedigm uses and will continue to use its website, press releases, SEC filings, and various social media channels, including Twitter (https://twitter.com/cinedigm), LinkedIn (https://www.linkedin.com/company/cinedigm/), Facebook (https://facebook.com/Cinedigm), StockTwits (https://stocktwits.com/CinedigmCorp) and the Company’s website (www.cinedigm.com) as an additional means of disclosing public information to investors, the media and others interested in the Company. Certain information the Company publishes on its website, in press releases, SEC filings and on social media may be considered material information, and the Company encourages investors, the media and other persons interested in the Company to review the business and financial information that the Company publishes on its website, disseminates in press releases, documents filed with the SEC and on the social media channels identified above, because this information could be considered material information. For more information, visit http://www.cinedigm.com.

CIDM press contact:

Jill Calcaterra
310-466-5135
jcalcaterra@cinedigm.com

THE SOURCE: Cinedigm Corp.

See the source version on accesswire.com:
https://www.accesswire.com/619699/Cinedigm-Reduces-Total-Debt-By-244-Million-Or-474-and-Annual-Interest-Expense-by-37-or-16-Million-compared- as of-december-31-2019

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