Village Roadshow Ltd
(ASX:VRL) says that Village Roadshow Pictures has reached an agreement with its banking syndicate for a new three year US$1 billion film financing facility.
Village Roadshow owns 40.89% of Village Roadshow Entertainment Group the parent of Village Roadshow Pictures.
Village Roadshow CEO Graham Burke says to obtain such levels of commitment in this market demonstrates the underlying strengths of the company’s motion picture interests and comes at a time when movie attendance is at an all time high as people seek low cost escapes from the worries of the world.
The company says the new financing has resulted in it being released from its US$7.5 million guarantee to JP Morgan Chase and also being released from a non financial guarantee previously provided to Village Roadshow Pictures banking syndicate.
Village Roadshow says its guarantee to Warner Brothers remains in place, as does its US$45 million loan to Village Roadshow Entertainment Group, made in May 2009.
The company also says in light of the additional support provided to Village Roadshow Entertainment Group, unless there is a material change to the group’s financial circumstances it will not recommend the payment of a final dividend for the 2010 financial year.
Village Roadshow reported a profit for the 2009 financial year, although significantly lower than the year before.
