Cinram International will use $1.2 billion in bank facilities led by Citigroup and Merrill Lynch to fund the $1.05 billion acquisition of the DVD and CD manufacturing and physical distribution businesses from AOL Time Warner, said Cinram CFO Lewis Ritchie. Merrill advised on the deal. The credit comprises a $150 million revolver and $1.05 billion in term loans with an average tenor of 5.9 years. The revolver will be undrawn when the acquisition closes in the fall, said Ritchie. Citi and Merrill bankers did not return calls.
Cinram Plugs Citi, Merrill