IMAGE ENTERTAINMENT SECURES $20 MILLION FINANCING
IMAGE ENTERTAINMENT SECURES $20 MILLION FINANCING CHATSWORTH, Calif., Nov. 19 /PRNewswire/ -- Image Entertainment
Inc., (NASDAQ: DISK) one of the largest suppliers of laserdisc software in the United States, announced today that it has privately placed $20 million of secured notes with a large financial institution.
Net proceeds from the financing will be used to retire indebtedness of approximately $14.1 million. The balance will be used for working capital and future growth. Martin W. Greenwald, chairman and chief executive officer, said, "We are delighted about the opportunity this funding brings to Image. Our commitment to expansion of the laserdisc software universe just got an enormous shot in the arm. Greater inventory depth and improved customer service are the focus of our immediate plans. Long term, this capital infusion allows us to solidify our position as the market leader in this phenomenally exciting industry." The financing is comprised of $15 million of senior secured notes due in five years and bearing annual interest at 11 percent, and $5 million of senior secured subordinated notes due in seven years and bearing annual interest at 13 percent. In connection with the financing, the lender was issued warrants to purchase 7.5 percent of the company's outstanding common stock on a fully-diluted basis. Image Entertainment Inc. has an extensive distribution network of over 1,800 retail outlets and exclusive licensing and distribution agreements with major producers of movies, music videos and specialty programming, including Disney's Buena Vista Home Video, FoxVideo, Hanna-Barbera Home Video, Orion Home-Video and SONY Music Video. The company has approximately 10.9 million shares outstanding and trades on the NASDAQ National Market System. -0- 11/19/91 /CONTACT: David DelGrosso, 818-407-9100, ext. 275 or Cheryl Lee 818-407-9100, ext. 256, both of Image Entertainment/ (DISK) CO: Image Entertainment ST: California IN: ENT SU: EH-SE -- LA010 -- 4840 11/19/91 10:02 EST
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|Date:||Nov 19, 1991|
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