Term Loan Maturity Extended to March 2028
HALIFAX, NS, March 26, 2021 /CNW/ - WildBrain Ltd.
("WildBrain" or the "Company") (TSX: WILD), a global
leader in kids and family entertainment, has completed the
refinancing of its senior secured term loan with a new seven-year,
US$285 million senior secured term
loan facility (the "Term Loan"), maturing in March 2028. The Term Loan has no financial
maintenance covenant and bears interest at a rate of LIBOR plus
4.25%.
The Company has also entered into a new five-year, US$30 million revolving credit facility (the
"Revolving Facility") with an interest rate of LIBOR plus
4.00%. The Revolving Facility does not carry a financial
maintenance covenant, except when amounts are drawn and
outstanding. The Revolving Facility matures on the earlier of
March 2026 or three months prior to
the maturity of the Company's convertible debentures, except where
converted.
The net proceeds of the Term Loan were used to repay the
existing US$276.5 million term
facility maturing in December 2023.
The Revolving Facility replaces the existing undrawn US$30 million revolving credit facility maturing
in June 2022.
Eric Ellenbogen, CEO of
WildBrain, said: "We have been hard at work over the past 20 months
repositioning our assets for meaningful, long-term growth. With two
major IP deals announced in the past six months and a robust deal
pipeline, we are now well on our way to executing our strategic
vision. Credit markets have taken notice of our improving financial
performance and earnings trajectory, enabling us to refinance our
term loan and our revolver at attractive terms. We added
significant duration to both of these instruments while also
removing the financial maintenance covenant on the term loan. This
enhanced capital structure affords us significant strategic and
financial flexibility to further drive our digital, content and
brand strategies."
RBC Capital Markets acted as sole lead arranger and bookrunner
on the refinancing. The credit agreement in respect of the Term
Loan and Revolving Facility will be available on SEDAR
at www.sedar.com.
For more information, please contact:
Investor Relations: Nancy Chan-Palmateer - Director,
Investor Relations, WildBrain
nancy.chanpalmateer@wildbrain.com
+1 416-977-7358
Media: Shaun Smith - Director,
Corporate & Trade Communications, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations to run wild, engaging kids
and families everywhere with great content across all media. With
approximately 13,000 half-hours of filmed entertainment in our
library – one of the world's most extensive – we are home to such
brands as Peanuts, Teletubbies, Strawberry
Shortcake, Caillou, Inspector Gadget, Johnny Test and Degrassi. At our
75,000-square-foot state-of-the-art animation studio in
Vancouver, BC, we produce such
fan-favourite series as The Snoopy Show, Snoopy in
Space, Chip & Potato, Carmen Sandiego, Go, Dog. Go! and more. Our
shows are enjoyed worldwide in more than 150 countries on over 500
streaming platforms and telecasters, and our AVOD business –
WildBrain Spark – offers one of the largest networks of kids'
channels on YouTube, garnering billions of views per month from
over 150 million subscribers. We also license consumer products and
location-based entertainment in every major territory for our own
properties as well as for our clients and content partners. Our
television group owns and operates four family entertainment
channels that are among the most viewed in Canada. WildBrain is headquartered in
Canada with offices worldwide and
trades on the Toronto Stock Exchange (TSX: WILD). Please visit us
at wildbrain.com.
Forward-Looking Statements
This press release contains "forward-looking statements" under
applicable securities laws with respect to the Company including,
without limitation, statements regarding a refinancing by the
Company and associated credit facilities, the Company's deal
pipeline, the Company's financial flexibility, the future financial
and operating performance of the Company, and the business
strategies and operational activities of the Company. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties and are based on information currently
available to the Company. Actual results or events may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results or events to
differ materially from current expectations, among other things,
include epidemics, pandemics or other public health crises,
including the current outbreak of COVID-19, the magnitude and
length of economic disruption as a result of the worldwide COVID-19
outbreak, the ability of the Company to complete deals and execute
on its business strategies, market factors, and risk factors
discussed in materials filed with applicable securities regulatory
authorities from time to time including matters discussed under
"Risk Factors" in the Company's most recent Annual Information Form
and annual Management Discussion and Analysis. These
forward-looking statements are made as of the date hereof, and the
Company assumes no obligation to update or revise them to reflect
new events or circumstances, except as required by law.
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SOURCE WildBrain Ltd.