Canadian Digital Cinema Partnership Completes $115 Million Financing for Digital Cinema Conversion  

 

June 21, 2011

On June 21, 2011, Canadian Digital Cinema Partnership ("CDCP"), a joint venture between Cineplex Entertainment Limited Partnership and Empire Theatres Limited completed its financing transactions with The Bank of Nova Scotia for the acquisition and deployment of digital projection systems to approximately 1600 of the partners' movie theatre screens across Canada. This financing transaction will enable the partners to complete the roll out of digital projectors into their circuits over the next 18 months.  Digital projection provides consumers with an enhanced movie-going experience far superior to 35mm film projection.  In addition to brighter and sharper images on screen, digital projection provides increased programming flexibility, high quality and consistent imagery on screen and the ability to add 3D technology. CDCP has also executed long-term deployment agreements with six of the major movie distributors.  The Bank of Nova Scotia acted as Sole Lead Arranger and Administrative Agent for the syndicate of Lenders and Bank of Montreal and The Toronto-Dominion Bank acted as Co-Syndication Agents.  The financing transactions included an $80 million syndicated credit facility and $35 million in equity contributions from the CDCP partners. Digital Cinema Implementation Partners, LLC will provide administrative services and system support to CDCP in connection with its digital deployment in Canada.

The Bank of Nova Scotia was represented by McMillan LLP with a team that included Andrew Kent, Don Waters, Tushara Weerasooriya, and Julie Han (Toronto), Judie Jokinen and Rachel April Giguere (Montreal) and Graham Matthews (Vancouver).