Cinedigm to get $100 million in loans

Cinedigm to receive $100M in loans to finance digital conversion for 2,133 theater screens

• On 1:58 pm EDT, Wednesday October 28, 2009

MORRISTOWN, N.J. (AP) -- Cinedigm Digital Cinema Corp. said Wednesday it had received commitment letters from lenders for loans up to $100 million, which will allow 2,133 theater screens to be converted from film to digital projectors.

The conversion is a precursor to showing movies in digital 3-D.

Cinedigm said it expects the agreement for the five-year senior credit facilities to close by the end of the year, with installations to start early next year.

The loan commitments are from General Electric Co.'s GE Capital and Societe Generale. GE Capital's commitment covers financing for about 1,600 digital screens while Societe Generale's will cover 533.

The loans are gradually paid back by movie studios, who will eventually save on the cost of making film prints.

Since 2005, Cinedigm has helped install almost 4,000 digital screens in the U.S.