Borrowings

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

Borrowings

6. Borrowings

Revolving Credit Facility Borrowings, Net

As of September 30, 2025 and December 31, 2024, Revolving Credit Facility Borrowings, Net included the following:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Wells Fargo Credit Facility borrowings	$	29,000	$	37,000
Unamortized debt issuance costs	(2,523)		(644)
Revolving Credit Facility Borrowings, net	$	26,477	$	36,356

Credit Agreement

The Company was a party to a Sixth Amended and Restated Credit Agreement, dated as of March 25, 2022 (the “Credit Agreement”), that provided for a credit facility (the “Credit Facility”). On July 14, 2025, the Company entered into a Seventh Amended and Restated Credit Agreement (the “New Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto. The facility under the New Credit Agreement (the “New Credit Facility”) matures on July 14, 2030; provided that if certain convertible debt that is permitted to be incurred under the New Credit Agreement, and is so incurred after the date of the New Credit Agreement, has a maturity date that is earlier than 91 days after the maturity date of the New Credit Facility and the aggregate amount of any such convertible debt that remains outstanding on the date that is 91 days prior to the earliest maturity date of any such convertible debt (the “Springing Maturity Date”) exceeds $100.0 million, then the maturity date for the New Credit Facility shall automatically be modified to be the Springing Maturity Date. The Company’s obligations under the New Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors.

The New Credit Agreement provides for a revolving borrowing capacity of $375.0 million, and contains an uncommitted accordion feature that allows the Company to further increase its borrowing capacity by the greater of $140.0 million or by the Company’s EBITDA (as defined in the Credit Agreement) (“Adjusted EBITDA per Credit Facility”) for the sum of the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement.

The New Credit Agreement requires that the Company does not exceed a maximum Senior Secured Net Leverage Ratio (as defined therein) of 3.25:1.00, which may be increased under certain circumstances and is tested on the last day of each fiscal quarter. In addition, the New Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case, subject to negotiated exceptions and baskets. The New Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. The Company was in compliance with this requirement as of September 30, 2025 as the Senior Secured Net Leverage Ratio was 0.00:1.00.

Loans under the New Credit Facility will bear interest, at the Company’s option, at (i) Term SOFR, Eurocurrency Rate or Term CORRA plus a margin ranging from 1.00% to 1.75% per annum or (ii) the U.S. base rate or the Canadian prime rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company’s total leverage ratio. In no event will Term SOFR, Eurocurrency Rate or Term CORRA be less than 0.00% per annum.

The Company incurred fees of approximately $2.2 million in connection with the New Credit Agreement, which are being amortized on a straight-basis over the term of the New Credit Agreement.

As of September 30, 2025, borrowings under the New Credit Facility were $29.0 million (December 31, 2024 — $37.0 million under the previous Credit Facility) and bore interest at Term SOFR, plus a margin of 1.75% per annum based on the Company’s total leverage ratio. The effective interest rate for the three and nine months ended September 30, 2025 were 6.09% and 6.15%, respectively.

As of September 30, 2025 and December 31, 2024, the Company had no letters of credit or advance payment guarantees outstanding under the Credit Facility. As of September 30, 2025, the amount available for future borrowings under the New Credit Facility was $346.0 million (December 31, 2024 — $263.0 million under the previous Credit Facility).

Foreign Exchange Facility

Within the New Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. As of September 30, 2025, the net unrealized gain on the Company’s outstanding foreign currency forward contracts was $0.3 million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2024 — net unrealized loss of $2.0 million). As of September 30, 2025, the notional value of the Company’s outstanding foreign currency forward contracts was $48.7 million (December 31, 2024 — $48.4 million).

Bank of China Facility

As of September 30, 2025, and December 31, 2024, there were no borrowings outstanding under the Bank of China Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) and outstanding letters of guarantee were RMB 1.0 million (less than $0.1 million).

As of September 30, 2025, the amount available for future borrowings under the Bank of China Facility was RMB 190.0 million ($26.7 million) and the amount available for letters of guarantee was RMB 9.0 million ($1.3 million). The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee. The effective interest rate for the three and nine months ended September 30, 2025 was 0% for each such period (2024 — 0% for each such period). There were no amounts drawn under the Bank of China Facility for the three and nine months ended September 30, 2025.

HSBC China Facility

In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”) entered into an unsecured revolving facility for up to RMB 200.0 million ($28.1 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”). As of September 30, 2025 and December 31, 2024, no borrowings were outstanding under the HSBC China Facility. As of September 30, 2025, the amount available for future borrowings under the HSBC China Facility was RMB 200.0 million ($28.1 million). The effective interest rate for the three and nine months ended September 30, 2025 was 0% for each such period (2024 — 0%).

NBC Facility

The NBC Facility (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) has been renewed to October 8, 2026. The Company did not have any letters of credit or advance payment guarantees outstanding as of September 30, 2025 and December 31, 2024 under the NBC Facility.

Convertible Notes and Other Borrowings, Net

As of September 30, 2025 and December 31, 2024, Convertible Notes and Other Borrowings, Net included the following:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2025		2024
Convertible Notes	$	230,000	$	230,000
Unamortized discounts and debt issuance costs	(737)		(1,864)
Convertible Notes, net	229,263		228,136
Federal Economic Development Loan	1,636		2,056
Unaccreted interest benefit	(156)		(291)
Federal Economic Development Loan, net	1,480		1,765
Convertible Notes and Other Borrowings, net	$	230,743	$	229,901

Convertible Notes

On March 19, 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (the “Convertible Notes”).

The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal of $230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year. The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.

The Company continues to record the Convertible Notes entirely as a liability on the Condensed Consolidated Balance Sheets, net of initial purchasers’ discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs.

Federal Economic Development Loan

As of September 30, 2025, the Federal Economic Development Loan (as defined and described in Note 13 to the Company’s audited Consolidated Financial Statements in its 2024 Form 10-K) had a carrying value of $1.5 million, net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company’s Condensed Consolidated Balance Sheets.