Capital Markets Loosen Up for Century City Firm

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Who says companies can’t raise any money these days?

Imperial Capital LLC, a Century City investment banking firm, announced last week that it has completed a $75 million recapitalization for Cinedigm Digital Cinema Corp., a company looking to bring digital technology to movie theaters.

The announcement is the latest sign that the capital markets are loosening, observers said, after a number of companies have recently succeeded in selling new stock.

Cinedigm is based in Morristown, N.J., but has significant operations in Los Angeles, with offices in Hollywood, Woodland Hills and Chatsworth. The company works with Hollywood studios to provide digital film content to theaters and entertainment centers across the country.

On Aug. 12, Imperial announced the placement of $75 million of senior notes maturing in 2014. The financing was provided by Sageview Capital LP, an investment fund based in Palo Alto.

John Mack, executive vice president and co-head of corporate finance for Imperial, said the deal should give other companies hope because it demonstrates that capital is available, though it may take some work to access it.

“The Cinedigm deal was an interesting transaction,” he said. “We had to put together creatively structured financing. We raised them a lot of money at a relatively low level of dilution so it was good for the existing equity holders.”


Against the Grain

When the investment community began dumping bank stocks with a vengeance two years ago, B. Riley & Co. LLC moved in the other direction.

The boutique West L.A. investment bank launched its own banking industry practice, focusing on battered community and regional banks that stood a decent chance of participating in the recovery. That contrarian move, which catered to the firm’s mostly hedge fund-oriented clientele, is paying off.

The investment bank organized a conference in Santa Monica earlier this month featuring mostly local banks and attracted 50 investors from around the country.

“I wanted to see companies you don’t normally see at other conferences I don’t want to spend my time looking at what a lot of other people are looking at,” said Mitch Sacks, a principal at Grand Slam Asset Management in Fort Lee, N.J. “Here, I also get to see a snapshot of what’s been going on at ground zero for the meltdown in real estate assets in this country.”

Attendees heard speeches from respected regional economists and quizzed top executives from nine banks, including Wilshire Bancorp Inc., East West Bancorp Inc. and Preferred Bank.

“It’s been a niche that’s worked out really well for us,” said Bryant Riley, chairman of the investment bank who downsized his firm in other areas earlier this year but is building up his banking team. “We saw an interesting opportunity.”


Payback Time

CVB Financial Corp., the Ontario parent of Citizens Business Bank, announced last week that it has gained approval from regulators to repay money received under the government’s financial rescue plan.

CVB, which received $130 million in December under the U.S. Treasury Dept.’s Troubled Asset Relief Program, said in a statement that it will repay the government “as soon as possible.”

In anticipation of the move, the company sold $133 million in newly issued common equity late last month.


C-Suite News

California United Bank, based in Encino, announced that Duane King will join its West L.A. regional office as vice president of commercial banking.


Staff reporter Deborah Crowe contributed to this column. Staff reporter Richard Clough can be reached at [email protected] or at (323) 549-5225, ext. 251.

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