Ymagis Successfully Issued a 36.5 Million Bond in Private Placement

19 February 2015

YMAGIS (ISIN: FR0011471291, MNEMONIC: MAGIS), the specialist in digital technologies for the cinema industry, announced today that it has successfully completed a privately placed bond of €36.5 million with French and Belgian institutional investors. This placement has been structured in two tranches: the first €17.5 million bond matures in February 2019 and offers a coupon of 4% per annum, while the second, a €19 million bond, matures in February 2020 and offers a coupon of 4.25% per annum.

The success of this operation allows the group to strengthen its financial flexibility, and recognizes the relevance of the growth strategy led by YMAGIS. The proceeds will be used as follows:

  • To reimburse the €15.4 million equity warrant bond (OBSA in French) issued in October 2014 following the acquisition of dcinex. The equity warrant bond would have paid interest at an average rate of 7.5% from January 2016, compared to 3.5% currently, and represented a dilution risk of up to 18.9% of the common stock (fully-diluted) if they were exercised,
  • To purchase dcinex’s subordinated debt for €13.9 million, which paid a coupon of 9.8%,
  • To lengthen its debt maturity,
  • To build up YMAGIS’ cash position, mostly used in the scope of the acquisition of dcinex.

YMAGIS Chief Executive Officer Jean Mizrahi stated, “As previously announced to the stock market during the acquisition of dcinex, this private bond efficiently optimizes the financial structure of the group and further diversifies our sources of funding. It’s a milestone in our company’s history and this new facility will provide us increased financial means as we continue the global expansion of our business.”

The issue was lead managed by Oddo and Cie.