Loan will speed up digital conversion of Euro theaters
European digital cinema company Arts Alliance Media has secured €50 million ($68.6 million) in funding for its theater conversion program.Sankaty Advisors, the credit affiliate of Bain Capital, will provide a combination of senior debt, to be repaid as a priority, and mezzanine debt, combining loans with equity options, for deployment of digital cinema equipment across Europe. AAM has digital cinema deals in place in seven Euro territories with commitments for over 1,500 screens. The deal is expected to close in 30 days. AAM topper Howard Kiedaisch said that the deal marked a change in pace for digital cinema roll-out, which had slowed in the past year because of the financial crisis. “Sankaty Advisors are very forward thinking and have created an extremely flexible model that we are looking forward to offering to our exhibition partners,” he said.