
News Announcement For Immediate Release
For
more information contact:
Omar Choucair Joseph Jaffoni
Chief Financial Officer Jaffoni
& Collins Incorporated
DG FastChannel, Inc. 212/835-8500
972/581-2000 dgit@jcir.com
- Funding in Place to Close Vyvx
Transaction and for Other Growth Initiatives -
Dallas, TX – March 13, 2008 – DG FastChannel, Inc. (NASDAQ: DGIT), a
leading provider of digital media services to the advertising, entertainment
and broadcast industries, today announced that it closed a new six–year, $145
million senior credit facility with BMO Capital Markets as lead arranger. The senior credit facility consists of $115 million
in term loans and a $30 million revolving credit facility. The new expanded
facility replaces DG FastChannel’s
prior $85 million credit facility.
The bank group consists of: BMO
Capital Markets (lead arranger), Wachovia Bank, N.A., Webster Bank, N.A.,
Citibank, N.A., Fifth Third Bank, First Tennessee Bank, N.A., First Bank, and
Bank of the West.
DG
FastChannel intends to use the borrowings under the new $145
million credit facility to fund the previously announced acquisition of the Vyvx advertising
services business and for general corporate
purposes. DG FastChannel has
also obtained a financing commitment from BMO Capital Markets for a two-year
$65 million bridge loan. The Vyvx
transaction is expected to close in the
2008 second quarter subject to securing regulatory approvals and the
satisfaction of other customary closing conditions.
As of December 31, 2007, DG
FastChannel, Inc. had net
debt of $34.7 million and total debt of $44.8 million.
Omar Choucair, Chief
Financial Officer of DG FastChannel, stated, “We value BMO’s relationship
and appreciate the entire bank group’s confidence in DG FastChannel and our plans for growth. The new credit facility provides an
attractive cost of capital, available funding to close the Vyvx transaction and
the financial flexibility to continue pursuing our strategies for growth and
expansion.”
-more-
DG FastChannel,
3/13/08 page 2
About
DG FastChannel, Inc.
DG
FastChannel
provides innovative, technology-based solutions to help advertisers and
agencies work faster, smarter and more competitively. DG
FastChannel delivers the standard in digital media services to the
advertising, broadcast and publishing industries. The Company utilizes satellite and Internet
transmission technologies and has deployed a suite of digital media intelligence
and asset management tools designed specifically for the advertising industry,
including creative and production resources, broadcast verification, and
digital asset management. The Company has an online media distribution network
used by more than 5,000 advertisers and agencies, and over 21,000 online radio,
television, cable, network and print publishing destinations. For more information visit www.dgfastchannel.com.
Forward-Looking
Statements
This release contains
forward-looking statements relating to the Company, including the expansion of
its digital distribution network, the demand among certain clients for digital
audio and video delivery services and its expectations of operations of
the recently acquired Point.360 advertising distribution operations, GTN
advertising distribution operations, its strategic alliance with Enliven
Marketing Technologies and its announcement to purchase the Vyvx advertising
distribution assets from Level 3. These
forward-looking statements involve risks and uncertainties, which could cause
actual results to differ materially from those projected. These and other risks relating to DG FastChannel’s business are set forth in the Company’s filings with the
Securities and Exchange Commission. DG FastChannel assumes no obligation to
publicly update or revise any forward-looking statements.
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