Canada's Cineplex Inc. announced it has commitments from a syndicate of banks to amend and extend its current credit facilities.

The amended credit facilities will be provided by a syndicate of lenders led by The Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of Commerce.

This amendment will include an extended five year term, increased revolving component, and additional flexibility in the permitted use of funds. The amended facilities are expected to total $500 million and be comprised of a $150 million five-year senior secured non-revolving term credit facility and a $350 million five-year senior secured revolving credit facility.

In addition, the amendment will contain provisions allowing for the increase of the credit facility commitment amount by an additional $150 million, if necessary, with the consent of the lenders.

The Company intends to draw upon this amended facility to finance the previously announced acquisition of 24 Empire theatres located in Atlantic Canada, which Cineplex expects to close on October 24, 2013. The Company also recently announced a $100 million public offering of extendible convertible unsecured subordinated debentures on a bought deal basis. The net proceeds of the offering will be used to partially reduce the bank indebtedness that is expected to be incurred upon the closing of the Empire theatres acquisition.