HALIFAX, NS, March 4, 2021 /PRNewswire/ - WildBrain Ltd.
("WildBrain" or the "Company") (TSX: WILD), a global
leader in kids and family entertainment, has completed a
US$6.3 million subsequent closing of
the previously announced financing with its largest shareholder,
Fine Capital Partners L.P. ("Fine Capital"), on behalf of
certain funds managed by Fine Capital (the "Financing").
Pursuant to the terms of the Financing announced in May 2020, Fine Capital agreed to purchase up to
US$18,497,500 (the US dollar
equivalent of CAD$25.0
million1) of exchangeable secured debentures (the
"Exchangeable Debentures") issued by a subsidiary of the
Company ("Subco"). At the initial closing of the Financing
in June 2020, Fine Capital subscribed
for US$12,208,350 of Exchangeable
Debentures, along with warrants to purchase 5,000,000 variable
voting shares of the Company (the "Variable Voting Shares")
at a price of CAD$1.45 per Variable
Voting Share. Today, Subco issued the remaining balance of
US$6,289,150 in Exchangeable
Debentures to Fine Capital. The financing structure does not
increase the Company's leverage ratio for covenant purposes under
its senior credit facility2.
The Exchangeable Debentures are exchangeable for Variable Voting
Shares at a price of US$1.072855 per
Variable Voting Share (the US dollar equivalent of CAD$1.451).
Further details on the Exchangeable Debentures can be found in
the Company's annual information form dated September 22, 2020 which is available on SEDAR at
www.sedar.com.
1.
|
F/x exchange rate
of 1.3516 CAD to USD.
|
2.
|
Net debt includes
long-term debt and bank indebtedness less cash and excludes interim
production financing. Net leverage ratio as discussed in this press
release is a reference to the Total Net Leverage Ratio as defined
in the Company's senior secured credit agreement available on SEDAR
at sedar.com.
|
For more information, please contact:
Investor Relations: Nancy Chan-Palmateer - Director,
Investor Relations, WildBrain
nancy.chanpalmateer@wildbrain.com
+1 416-977-7358
Media: Shaun Smith - Director,
Corporate & Trade Communications, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations to run wild, engaging kids
and families everywhere with great content across all media. With
approximately 13,000 half-hours of filmed entertainment in our
library – one of the world's most extensive – we are home to such
brands as Peanuts, Teletubbies, Strawberry
Shortcake, Caillou, Inspector Gadget, Johnny Test and Degrassi. At our
75,000-square-foot state-of-the-art animation studio in
Vancouver, BC, we produce such
fan-favourite series as The Snoopy Show, Snoopy in
Space, Chip & Potato, Carmen Sandiego, Go, Dog. Go! and more. Our
shows are enjoyed worldwide in more than 150 countries on over 500
streaming platforms and telecasters, and our AVOD business –
WildBrain Spark – offers one of the largest networks of kids'
channels on YouTube, garnering billions of views per month from
over 150 million subscribers. We also license consumer products and
location-based entertainment in every major territory for our own
properties as well as for our clients and content partners. Our
television group owns and operates four family entertainment
channels that are among the most viewed in Canada. WildBrain is headquartered in
Canada with offices worldwide and
trades on the Toronto Stock Exchange (TSX: WILD). Please visit us
at wildbrain.com.
Forward-Looking Statements
This press release contains "forward-looking statements" under
applicable securities laws with respect to the Company including,
without limitation, statements regarding an exchangeable secured
debenture financing arrangement and expected use of net proceeds
from such financing. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties and are
based on information currently available to the Company. Actual
results or events may differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause actual results or events to differ materially from current
expectations, among other things, include the availability of
investment opportunities and at acceptable valuations, epidemics,
pandemics or other public health crises, including the current
outbreak of COVID-19, the magnitude and length of economic
disruption as a result of the worldwide COVID-19 outbreak, and risk
factors discussed in materials filed with applicable securities
regulatory authorities from time to time including matters
discussed under "Risk Factors" in the Company's most recent Annual
Information Form and annual Management Discussion and Analysis.
These forward-looking statements are made as of the date hereof,
and the Company assumes no obligation to update or revise them to
reflect new events or circumstances, except as required by law.
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SOURCE WildBrain Ltd.