Madacy Entertainment announces commitment for new banking facilities


    MONTREAL, April 2 /CNW Telbec/ - Madacy Entertainment Income Fund (TSX:
MEG.UN) is pleased to announce that it has received today a commitment letter
from LaSalle Business Credit, a division of ABN Amro, which provides for a new
banking facility in the amount of US$27.0 million, subject to certain
pre-closing conditions including the completion of standard legal
documentation. The new banking facility contemplates 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 Fund will pledge 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.
    The Fund intends to repay in full the revolving credit facility and the
term loan with its existing banking syndicate with funds drawn from the new
facility. The proposed terms of the new banking facility require compliance
with a monthly minimum fixed charge coverage ratio of 2.0:1.0. Management
expects to complete the foregoing legal documentation and complete the new
banking facility in the coming weeks.
    "We are pleased to have received this financing commitment from LaSalle
Business Credit and are looking forward to closing the financing with them in
the coming weeks" said Hillel Frankel, President of Madacy. "LaSalle was an
excellent partner to Madacy in our pre-IPO days and we believe closing on this
facility with them will permit us to return our entire focus to operating the
business and to executing on the many opportunities which are available to us.
We thank our existing banking syndicate for their support and patience which
has permitted us to negotiate a new facility that is good for Madacy and its
Unitholders", he said.

    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

For further information:

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

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