Reducing the burden

Seeking cheaper capital costs, Alliance Atlantis recently announced that it has successfully negotiated to offer C$700 million in debt. Merrill Lynch & Co., Royal Bank of Canada and The Toronto Dominion Bank have agreed to fully underwrite the financing commitment for any new credit facilities (see article).

Alliance Atlantis will use the funds for operating purposes, as well as to retire 13% senior subordinated notes and the outstanding balance on an existing credit line facility.