The Telecom, Media and Technology (TMT) financing business of GE Capital, an operating unit of diversified conglomerate General Electric Company (GE), recently augmented the credit facility of VSS – Southern Theatres, LLC to fund its organic growth. With the incremental credit line of $12 million, the credit facility of Southern Theatres currently stands at $92 million. While GE Capital Markets served as the lead arranger and joint book-runner on this facility, GE Capital’s TMT business served as its administrative agent.
Southern Theatres operates multiplex movie theatres such as The Grand Theatres, Amstar Cinemas, GrandLuxe Theatres and The Theatres at Canal Place across the U.S. Since its inception in 2002, the company has evolved as one of the leading operators of movie theatres, operating 36 theatre and cinema eatery locations with 433 screens in various states in the country.
In order to fuel its growth engine, Southern Theatres follows a two-pronged strategy of internal expansion and selective add-on acquisitions. The company has continually turned to GE Capital financing to support its growth plans. In Sep 2013, Southern Theatres utilized a GE Capital credit facility to acquire Movie Tavern, one of the largest in-theater dining concepts in the U.S. Southern Theatres will utilize the latest financing transaction to fund the development of several new Movie Tavern locations in southeastern U.S. and Pennsylvania.
Serving over 100 million customers worldwide, General Electric is one of the largest and the most diversified technology and financial services corporations in the world, with products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital.
General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering now in the industry include ITT Corp. (ITT), Compass Diversified Holdings (CODI) and Carlisle Companies Inc. (CSL), each having a Zacks Rank #2 (Buy).
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