IMAX Corp Bolsters Financial Flexibility with Expanded Credit Facility

IMAX Corp has expanded its senior secured revolving credit facility to $375 million, with an option to increase to $515 million or more, to support its operational needs, network expansion, and other corporate purposes. The updated credit agreement reduces borrowing costs and enhances IMAX's financial flexibility.

IMAX Corp (IMAX) has significantly bolstered its financial flexibility by expanding its senior secured revolving credit facility to $375 million, with an option to increase to $515 million or more [1]. This expansion, set to extend until 2030, was coordinated by Wells Fargo Securities, LLC, alongside six other lenders, and offers reduced interest expenses compared to the previous agreement [1].

The updated credit agreement provides IMAX with greater financial flexibility to support ongoing operations, the expansion of its global theater network, and potential refinancing of current liabilities. CEO Rich Gelfond commented, "As we expand our network and content portfolio, this facility provides us with additional flexibility in executing our priorities and optimizing our capital structure" [1].

The credit facility reflects the strength of IMAX's business model and strategic position, with the company continuing to broaden its international theater network and strengthen its technology platform. IMAX currently operates around 1,700 screens, with about 400 in North America [1]. The company's film schedule through 2026 features titles like Disney's 'Avatar: Fire and Ash,' Marvel's 'Fantastic Four: First Steps,' and Amazon.com Inc.'s (AMZN) 'Project Hail Mary' [1].

Despite the positive news, IMAX stock inched lower by 0.2% on Tuesday afternoon [1]. However, the stock has gained over 8% in 2025 and more than 61% in the past 12 months [1]. Retail sentiment towards IMAX remained in 'bullish' territory with 'high' message volume levels on Stocktwits [1].

The expansion of IMAX's credit facility comes as the company continues to capitalize on its momentum to deliver value for shareholders. The enhanced scale and efficiency of the facility, combined with recurring cash generated by its global network, position IMAX to further capitalize on its growth trajectory.

References:
[1] https://stocktwits.com/news-articles/markets/equity/imax-new-credit-deal-gives-more-firepower-through-2030/ch8QQFvR58b
[2] https://finance.yahoo.com/news/imax-announces-renewal-expansion-credit-123000910.html