Redbox Entertainment, in a regulatory filing, disclosed it has received access to line of credit worth $50 million, as part of a restructured “Voting and Support Agreement” with HPS Investment Partners. As previously, reported, Redbox downsized its board of directors to five from nine members, including the addition of three new directors.
The news sent Redbox shares up than 32% in midday trading.
Redbox, which posted a net loss of more than $140 million in 2021, is attempting to transition the company from its legacy packaged-media kiosk business to include a digital focus on transactional VOD and ad-supported VOD content. The company generated $35.1 million in digital revenue, down from $39.7 million in 2020.
Redbox is eyeing more than $31.4 million in long-term debt this year, a tally that jumps to $271.5 million in 2024.