Prospect Capital Backs Cinedigm Recap

Prospect Capital provided a a $70 million term loan to support the recapitalization of subsidiaries of Cinedigm Digital Cinema Corp., the company announced. New York-based Cinedigm makes digital cinema distribution and exhibition software.


Prospect Capital Corporation PSEC -0.13% (“Prospect”) announced today that Prospect has provided a $70 million term loan to support the recapitalization of subsidiaries of Cinedigm Digital Cinema Corp. CIDM +9.49% (“Cinedigm”).

Headquartered in New York, New York, Cinedigm is a leader in the digital entertainment revolution. Cinedigm’s pioneering digital cinema deployment and servicing efforts, and its state-of-the-art distribution and exhibition software, are cornerstones of the digital cinema transformation. Cinedigm is also the leading digital aggregator of independent content in the world, providing end-to-end digital content delivery to theaters, digital and on-demand platforms, and DVD/Blu-ray. Through partnerships with iTunes, Netflix, Amazon, Google, Hulu, Vudu, Xbox, Playstation, and others, Cinedigm reaches a global digital audience. Cinedigm’s library of over 18,000 movies and television episodes includes award-winning documentaries from Docurama Films(R), next-generation independents from Flatiron Film Company(R), and acclaimed independent films and festival picks through partnerships with the Sundance Institute and Tribeca Film.

“We appreciate Prospect’s creativity with this complex transaction, which positions Cinedigm for growth in the digital entertainment marketplace,” said Adam Mizel, COO and CFO of Cinedigm.

“With our deep expertise in media and technology industries, as well as other verticals, Prospect is pleased to support Cinedigm, a market leader in its industry,” said Ted Fowler, Managing Director of Prospect Capital Management LLC. “We are interested in pursuing other large financing and investment opportunities with small-cap public companies like Cinedigm, closely held private companies, and private equity owned companies.”

Prospect Capital Corporation ( is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.