Madacy Entertainment announces completion of new banking facilities



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
    DISSEMINATION IN THE U.S./

    MONTREAL, April 30 /CNW Telbec/ - Madacy Entertainment Income Fund
(TSX: MEG.UN) is pleased to announce that it has completed today its
previously announced refinancing of its banking facilities with LaSalle
Business Credit, a division of ABN Amro. The new banking facility, in the
amount of US27.0 million, provides for a US dollar borrowing rate equal to the
lender's US prime reference rate and a Canadian dollar borrowing rate equal to
the lender's Canadian prime reference rate plus one-half of one percent. The
new banking facility requires compliance with a monthly minimum fixed charge
coverage ratio of 2.0:1.0. The Fund has pledged all of its assets as security
for the borrowing. Distributions to unitholders will be permitted upon
achievement by the Fund of EBITDA of approximately $7.9 million for fiscal
2007 and approximately $8.0 million on a trailing 12-month basis thereafter,
minimum excess availability on the banking facility of $5.0 million after any
distributions, and achievement of a fixed charge coverage of 2.0:1.0 before
the distribution and 1.0:1.0 after the distribution. Madacy has immediately
drawn an amount of approximately US$17.6 million to repay in full the
revolving credit facility and the term loan with its former banking syndicate.

    Madacy is a leading developer, producer and marketer of budget and
mid-priced recorded music products in North America.

    Further information can be found in the disclosure documents filed by
Madacy Entertainment Income Fund with the securities regulatory authorities,
available at www.sedar.com.




For further information:

For further information: Hillel Frankel, President, Madacy Entertainment
Income Fund, (514) 341-5600 x333

Organization Profile

MADACY ENTERTAINMENT INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890