CDCP Completes Financing to Begin Rollout

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Wed, 06/29/2011 - 20:00 -- Nick Dager

The Canadian Digital Cinema Partnership a joint venture between Cineplex Entertainment Limited Partnership and Empire Theatres Limited has completed its financing transactions for the deployment of digital projection systems to approximately 1600 of the partners' movie theatre screens across Canada. This financial support will enable Canada's two largest motion picture theatre exhibitors to complete the roll out of digital projectors into their circuits over the next 18 months. Cineplex Entertainment and Empire Theatres Limited appointed Blackstone Advisory Partners as their financial and structuring advisor for CDCP. Blackstone assisted CDCP with the evaluation and development of their financing plan and The Bank of Nova Scotia acted as lead arranger for CDCP's financing. These financing transactions included commitments of $80 million in committed bank financing and $35 million in equity contributions from the member circuits. Digital Cinema Implementation Partners will provide administrative services and system support to CDCP in connection with its digital deployment in Canada. CDCP was formed earlier this year to plan and implement the deployment of digital projection equipment in the two partners' theatres including the procurement of equipment arranging financing and securing digital deployment agreements with studios and other content providers. CDCP has also executed long-term deployment agreements with Twentieth Century Fox Sony Pictures Entertainment Warner Brothers Entertainment Walt Disney Studios Motion Pictures Canada Paramount Pictures and Entertainment One. Cineplex Empire Theatres