Scotia Capital, RBC Capital Markets and National Bank Financial will be providing the financing for Cineplex Galaxy's acquisition of Famous Players from Viacom. The transaction is estimated to be valued at about $500 million, including about $36 million in capital lease obligations. The transaction is expected to close in the third quarter. Gord Nelson, Cineplex Galaxy cfo, said the acquisition will be funded with a combination of debt and equity. A banker said syndication is set for next month.
"We are going to have a national presence across Canada," Nelson said of the acquisition. "It will allow us to give an entertainment experience to the Canadian population as a whole."
In 2004 Famous Players had total revenue of $520 million; Cineplex Galaxy had total revenues of $354 million. Michael Borys, senior v.p. and cfo at Famous Players, declined to comment. A National banker declined to comment and calls to Scotia and RBC were not returned.