XDC Begins to Implement €100 Million Credit Facility

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Fri, 05/28/2010 - 20:00 -- Nick Dager

XDC has begun implementing a €100 million credit facility to finance the rollout of digital cinema in Europe. “Finally this is the tangible result of 18 months of intensive cooperation between XDC the three banks and six major Hollywood studios ” says Serge Plasch XDC’s CEO. “With this loan we will now in practical terms be able to finance more than 2 000 screens across Europe.” BNP Paribas Fortis structured the loan which consists of two tranches of €50 million with the participation of the European Investment Bank and KBC Bank. XDC has fulfilled all the conditions required and executed the first drawdown of this loan facility last month. The first tranche will be used initially for the rollout of digital systems at Belgian exhibitors. It will then be used for several digital installations already planned for the next few weeks in other countries such as Germany Spain Poland Hungary Czech Republic and Slovakia.  This loan is the first important project finance deal in the European digital cinema industry.  It is largely covered by insurance provided by the Belgian Export Credit Agency for 22 European countries.