Entertainment One has secured a new four-year $150-million senior credit line to finance its day-to-day operations and small acquisitions.

The new banking line from a consortium led by JP Morgan will replace existing debt facilities.

Darren Throop, CEO of E1, says talks on the debt refinancing began last spring with JP Morgan, and produced an enlarged banking syndicate that includes Bank of America, Barclays, RBC and Toronto Dominion Bank.

To secure the new revolving credit facility, E1 had a third-party appraiser value its film and music library at around $175 million, and submitted a new business plan to its board of directors. E1 also had to surmount a worsening credit market.

‘The company now has additional capital to pursue further opportunities for additional growth in our core markets,’ Throop says.

Despite being on an acquisitions binge in the last year, the E1 boss insists the new credit line will not finance expensive deals down the road, only bolt-on acquisitions.

Without giving details, Throop says E1 will continue to diversify away from the Canadian market and build out a multi-territory distribution network in Europe and English-speaking markets internationally — a strategy also followed by rival Alliance Films.

E1, which is backed by London-based equity player Marwyn Investment Management and trades on Britain’s AIM market, last year purchased British distributor Contender Entertainment and Benelux distributor RCV as European beachheads.

Last fall, E1 acquired Seville Entertainment, and in July acquired Blueprint Entertainment, Barna-Alper Productions, Maximum Films and Oasis Pictures.