EXHIBIT 99.1
(IMAX LOGO)
IMAX CORPORATION
2525 Speakman Drive
Mississauga, Ontario, Canada L5K 1B1
Tel: (905)403-6500 Fax: (905)403-6450
www.imax.com
IMAX CORPORATION ANNOUNCES RETIREMENT OF $22 MILLION OF DEBT
COMPANY HAS REDUCED TOTAL DEBT BY OVER 40% IN LESS THAN TWO YEARS
Toronto, Canada - June 19, 2003 -- IMAX Corporation (Nasdaq:IMAX; TSX:IMX) today
announced that it has retired approximately $22 million in face value of its
$200 million of senior notes due December 2005 in exchange for newly-issued
common shares of the Company. After giving effect to these transactions,
approximately $178 million of the notes remain outstanding. When combined with
the Company's prior debt retirements in 2001 and 2002, IMAX has reduced its
total debt by more than 40% in less than two years.
"The retirement of approximately ten percent of outstanding debt is important
for IMAX and we believe that this reduction facilitates our ability to refinance
the remainder of the debt before December 2005 on favorable terms," said Richard
L. Gelfond and Bradley J. Wechsler, IMAX's Co-Chairmen and Co-Chief Executive
Officers. "Although the senior note issue is not due for another two and a half
years, we are committed to improving the Company's balance sheet and will
continue to seek opportunities to do so."
"Over just the last six weeks, the Company has eliminated a significant share
overhang resulting from the holdings of former shareholder Wasserstein Partners,
LP, successfully released The Matrix Reloaded: The IMAX Experience and now
eliminated a significant portion of our remaining debt," added Messrs. Gelfond
and Wechsler.
The $22 million in face value of senior notes were exchanged for approximately
2.9 million shares of IMAX common stock.
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EXHIBIT 99.1
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ABOUT IMAX CORPORATION:
Founded in 1967, IMAX Corporation is one of the world's leading entertainment
technology companies. IMAX's businesses include the creation and delivery of the
world's best cinematic presentations using proprietary IMAX(R) and IMAX(R) 3D
technology, and the development of the highest quality digital production and
presentation. IMAX has developed revolutionary technology called IMAX(R) DMR(TM)
(Digital Re-mastering) that makes it possible for any 35mm film to be
transformed into the unparalleled image and sound quality of The IMAX
Experience(R). The IMAX brand is recognized throughout the world for
extraordinary and immersive family experiences. As of March 31 2003, there were
more than 230 IMAX theatres operating in 34 countries.
IMAX(R), IMAX(R) 3D, IMAX(R)DMR(TM) and The IMAX Experience(R) are trademarks of
IMAX Corporation. More information on the Company can be found at www.imax.com.
This press release contains forward looking statements that are based on
management assumptions and existing information and involve certain risks and
uncertainties which could cause actual results to differ materially from future
results expressed or implied by such forward looking statements. Important
factors that could affect these statements include the timing of theatre system
deliveries, the mix of theatre systems shipped, the timing of the recognition of
revenues and expenses on film production and distribution agreements, the
viability of new businesses and products, and fluctuations in foreign currency
and in the large format and general commercial exhibition market. These factors
and other risks and uncertainties are discussed in the Company's Annual Report
on Form 10-K for the year ended December 31, 2002 and in the subsequent reports
filed by the Company with the Securities and Exchange Commission.
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For additional information please contact:
MEDIA: ANALYSTS:
IMAX CORPORATION, New York IMAX CORPORATION, New York
Romi Schutzer Stephen G. Abraham
212-821-0144 212-821-0140
rschutzer@imax.com sabraham@imax.com
ENTERTAINMENT MEDIA: BUSINESS MEDIA:
Newman & Company, Los Angeles Sloane & Company, New York
Al Newman Whit Clay
818-784-2130 212-446-1864
asn@newman-co.com wclay@sloanepr.com