Moody's lifts Imax outlook to positive from stable
NEW YORK—Moody's Investors Service late Thursday revised its ratings outlook for Imax Corp. to positive from stable based on the giant movie-screen maker's improved liquidity position.
The credit ratings agency said $160 million of rated debt is affected by the action.
Imax, based in Canada, announced an $18 million private placement of common stock and an amendment to its credit facility, which makes requirements more flexible, extends the payback date and potentially increases borrowing availability.
Proceeds from these transactions will help Imax manage the substantial upfront capital investments related to its joint venture agreements.
Moody's also affirmed its junk-rated 'Caa1' corporate family and the 'Caa1' probability of default ratings for Imax as well as the 'Caa2' rating on its senior unsecured bonds.
