Reading International announced today the signing of a new $55 million credit facility with Bank of America. On Nov. 28, the company refinanced its existing $35.0 million term loan with Bank of America  The new $55 million revolving credit facility, includes a $5.0 million sublimit for the issuance of standby letters of credit and a $1.0 million sublimit for swingline loans. The proceeds of the facility will be used (a) to refinance the existing BofA facility and (b) for general corporate purposes.

The facility is with our wholly owned subsidiary Consolidated Amusements Holdings LLC (“CAHLLC”) but does allow for the use of up to $27.0 million of the facility to finance our other domestic activities. CAHLLC holds the majority of our domestic leased cinemas, and it has pledged these in support of this facility. The facility has a 5-year term, at which time all amounts outstanding are due and payable.

Interest is based on LIBOR plus a variable margin of between 3.0% and 2.5%. Any unused portion of the facility carries an annual commitment fee of between 0.3% and 0.2%. Financial covenants are in line with usual and customary covenants for business loans of this nature.

Reading International is in the business of owning and operating cinemas and developing, owning and operating real estate assets.