TORONTO – November 23, 2016 – Mood Media Corporation (TSX:MM) (“Mood Media” or the “Company”), announced that effective today it has entered into the First Amendment to Credit Agreement (the “Amendment”) which amends its Credit Agreement, dated as of May 1, 2014, among Mood Media Corporation, the guarantors thereto, Credit Suisse AG, as administrative agent and a syndicate of lenders.
The primary modifications to the Credit Agreement implemented by the Amendment are:
- Elimination of the provision that permitted proceeds from asset dispositions, not otherwise used to prepay outstanding loans, cash collateralized letters of credit or for reinvestment, to prepay the Company’s 9.25% Senior Unsecured Notes, due 2020.
- Reduction of the eligible amount of investment in equity interests, loans and advances made by the Company or its subsidiary guarantors to its non-guarantor subsidiaries to $20 million from $40 million.
- Addition of a 2.00:1.00 secured leverage ratio as a maximum threshold required prior to making permitted restricted payments, as defined in the credit agreement.
- Maintenance of the interest coverage ratio used for covenant purposes at 1.50:1.00 until maturity. This covenant ratio had been scheduled to step up to 1.75:1.00 at March 31, 2017.
Steve Richards, the Company’s President and Chief Executive Officer, stated, “We are very pleased to have received the support of our First Lien lender group for this Amendment. The Amendment preserves the same interest coverage operating flexibility through maturity that we have had since the May 2014 inception of the First Lien facilities, and permits management to continue to focus on the execution of Mood’s transformation agenda.”
The Company’s first lien term loan and revolving credit commitments are scheduled to mature in May, 2019.
About Mood Media Corporation:
Mood Media (TSX:MM) is the global leader in elevating Customer Experiences. With more than 500,000 active client locations around the globe, Mood combines sight, sound, scent, social mobile technology and systems to create greater emotional connections between brands and consumers. Mood’s clients include businesses of all sizes and market sectors, from the world’s most recognized retailers and hotels to quick-service restaurants, local banks and thousands of small businesses. For more details: https://moodmedia.com.au/.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “may,” “will,” “would”, “is planning” and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: general industry and economic conditions; and changes in regulatory requirements affecting the businesses of Mood Media. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they are inherently subject to significant uncertainties and contingencies and may prove to be incorrect.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in Mood Media’s Management Discussion and Analysis dated November 9, 2016 and Mood Media’s annual information form dated March 30, 2016, both of which are available on www.sedar.com.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.
Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
Mood Media Corporation
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