XDC and Fortis Bank have entered into a mandate to arrange a 100 million Euro financing package
XDC and Fortis Bank have signed a mandate letter and an indicative term sheet to structure and arrange a 100 million Euro financing package in order to support XDC's first phase roll-out of digital cinema in Europe by early 2009.
Liège 2008 – Upon closing, this financing package will position XDC as a major player in the European market. Serge Plasch, CEO-Managing Director of XDC ,
is very pleased and proud to see that a leading project finance bank
has decided to partner with XDC with the view to close the first major
financing deal in the European digital cinema industry. He said: “This
financial support is the missing link and we’re about to get it. The
first step was to finalize the VPF deals with the studios. The second
step is the signature of the first contracts with exhibitors and
obtaining the support of European distributors which we have already
begun with Cineplexx in Austria. This agreement with Fortis Bank will
give our company the financial power to complete the first phase of the
roll-out with more than 2.000 screens.”
Christophe De Winter, Executive Director, Global Export & Project Finance at Fortis Bank said: “The
financing of the European digital cinema industry presents some unique
opportunities but also challenges due to its innovative contractual
structure. We are happy to share our expertise in structuring complex
financing schemes with XDC, a solid and trusted partner in the roll-out
of digital cinema equipment. We look forward to supporting XDC in the
long term and to building a fruitful business relationship.” The
parties have signed an indicative term sheet. However, the
availability of the financing remains subject to satisfactory due
diligence and documentation and to the bank’s credit committee approval.
Pierre Flamant, VP Finance & Administration concludes that “We
worked very closely with Fortis Bank over the last months to design the
most appropriate financial structure to the Digital Cinema Deployment
Agreements signed with the six Hollywood’s studios. XDC will now have
the adequate financing to execute its ambitious business plan. Our team
of more than 50 experts fully dedicated to digital cinema products and
services is very enthusiastic to start the roll-out of digital systems.
We are 100% determined to remain the leading pan-European service
company for digital cinema and we are fully confident we will complete
our global mandate for supplying 8.000 screens all over Europe."
