XDC and Fortis Bank Have Entered into a Mandate to Arrange a 100 Million Euro Financing Package

XDC and Fortis Bank have signed a mandate letter and an indicative term sheet to structure and arrange a 100 million Euro financing package in order to support XDC's first phase roll-out of digital cinema in Europe by early 2009.

Upon closing, this financing package will position XDC as a major player in the European market. Serge Plasch, CEO-Managing Director of XDC, is very pleased and proud to see that a leading project finance bank has decided to partner with XDC with the view to close the first major financing deal in the European digital cinema industry. He said: “This financial support is the missing link and we’re about to get it. The first step was to finalize the VPF deals with the studios. The second step is the signature of the first contracts with exhibitors and obtaining the support of European distributors which we have already begun with Cineplexx in Austria. This agreement with Fortis Bank will give our company the financial power to complete the first phase of the roll-out with more than 2.000 screens.”

Christophe De Winter, Executive Director, Global Export & Project Finance at Fortis Bank said: “The financing of the European digital cinema industry presents some unique opportunities but also challenges due to its innovative contractual structure. We are happy to share our expertise in structuring complex financing schemes with XDC, a solid and trusted partner in the roll-out of digital cinema equipment. We look forward to supporting XDC in the long term and to building a fruitful business relationship.” The parties have signed an indicative term sheet. However, the availability of the financing remains subject to satisfactory due diligence and documentation and to the bank’s credit committee approval.

Pierre Flamant, VP Finance & Administration concludes that “We worked very closely with Fortis Bank over the last months to design the most appropriate financial structure to the Digital Cinema Deployment Agreements signed with the six Hollywood’s studios. XDC will now have the adequate financing to execute its ambitious business plan. Our team of more than 50 experts fully dedicated to digital cinema products and services is very enthusiastic to start the roll-out of digital systems. We are 100% determined to remain the leading pan-European service company for digital cinema and we are fully confident we will complete our global mandate for supplying 8.000 screens all over Europe."

Source: DCinemaToday