Cineplex Galaxy Income Fund acquires Famous Players business

Date Closed: 6/13/2005

Value: $500 million

On July 22, 2005, Cineplex Galaxy Income Fund completed the acquisition of the Famous Player movie exhibition business of Viacom Inc. for $500 million, including the assumption of capital leases. Following the acquisition of Famous Players, Cineplex Galaxy is Canada’s largest movie exhibition business. Prior to completing the transaction with Viacom, Cineplex Galaxy entered into a consent agreement with Canada’s Commissioner of Competition, which requires the sale of 34 theatres following the completion of the acquisition. The transaction was funded in part from the proceeds of a $215 million public offering of units and 6 per cent convertible extendible unsecured subordinated debentures through a syndicate of underwriters led by RBC Capital Markets, Scotia Capital and National Bank Financial and from the proceeds of a $425 million credit facility entered into with a syndicate of lenders led by Scotia Capital, RBC Capital Markets and National Bank Financial.

The syndicate of banks was represented by BLG with a team that included Bruce Fowler, Gus Karantzoulis and Terence Lui (banking), Lee Woods (real estate), Adam Fanaki (competition), Ziad Katul (IP) in the Toronto office, and Pierre Côté and Claudine Millette (banking) in Montreal.