Alliance Films has completed the repurchase and refinancing of all its outstanding debt, ahead of further expansion into Europe.

The Montreal-based distributor said an estimated $400 million in debt, issued after it was acquired by Goldman Sachs & Co. in 2007, has been retired at a discount to its face value.

‘Given current market conditions and pricing, repurchasing and retiring all outstanding Alliance debt was simply a logical and fiscally prudent initiative and we are exceptionally pleased to have completed the transaction.’ said Alliance chairman Victor Loewy.

The transaction was approved by Alliance’s boardroom and main shareholders Société générale de financement du Québec and GS Capital Partners, the equity investment arm of Goldman Sachs.

The refinancing was prompted by a recent downgrade of Alliance’s debt by Moody’s Investors Service, which enabled the distributor to use its own money to buy back debt at below face value, believed to be around 75 cents on the dollar.

‘Going forward, this management team will continue to focus on maximizing box office returns, broadening our European network and exploring new markets and partnerships,’ Loewy said.

The debt refinancing, which aims to cut Alliance’s interest charges and boost its profitability, is the latest move by the Canadian distributor to strengthen its balance sheet after being acquired last year by Goldman Sachs.

The distributor expects to release around 100 films over the coming year in Canada, Britain and Spain.