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EFA Partners Assists with Advising Studio Movie Grill's Successful Emergence From Chapter 11

April 21, 2021

Dallas, TX – April 21, 2021:  Studio Movie Grill Holdings LLC, (“SMG”) announced that it has successfully
emerged from Chapter 11 bankruptcy. The Northern District of Texas (Dallas Division) Bankruptcy Court
approved its Plan of Reorganization at a hearing on March 26, 2021. According to a spokesperson for the
brand, SMG was one of the few Top 15 movie chains to remain open throughout the pandemic, leveraging
its restaurant kitchens for curbside takeout and partnering with GrubHub for delivery orders.

As the exhibition industry resurfaces from a truly historic period, SMG is operating 17 locations in five states
with two remaining locations in Indianapolis and Upper Darby (Philadelphia) scheduled to reopen on April
29th and May 27th, respectively. The brand will complete its line-up of 19 open locations in seven states in
time for Memorial Day weekend. Additionally, SMG will complete construction later this year in Alpharetta,
GA on a new Northpoint location, strategically located within miles of one of the largest malls in the country.
SMG Northpoint will house over 1,300 recliners and 14 screens, continuing its focus on the successful
Atlanta market.

SMG also announced today that longtime CFO/COO, Ted Croft, will lead SMG as CEO. Croft was
instrumental in securing funding for SMG’s rapid growth over the last decade and will now focus his attention
on company profitability and sustainability amid an even more complex entertainment marketplace. Prior to
joining SMG in 2011, Ted consulted with large investment groups on the acquisition and divestiture of
portfolios that included major brands and national franchises. His career spanned three Brinker International
concepts, including the enormous success of Macaroni Grill, and culminating as CFO of Corner Bakery.
“This has been a challenging time for the industry and the brand,” Croft said. “It’s a testament to SMG’s
founder, team members, and our other stakeholders, that we’re standing here today delivering a best-inclass
experience to folks getting out of their homes and safely back into theaters.”

SMG has also partnered with NATO (National Association of Theater Owners), further aligning its own “Simple,
Safer Ways to Enjoy the Show” message with the national #CinemaSafe program. “In a recent survey of more
than 50,000 SMG Guests attending a location in the last 6 months, our ‘Simple, Safer Ways to Enjoy the Show’
safety and sanitation strategy earned SMG a 95% in cleanliness and 97% in safety,” said Sheri Lawrence, VP
of Learning and Development.

For all movie fans, 2021 has been good for the Box Office with titles like Tom & Jerry (WB), Nobody
(Universal), and Godzilla vs. Kong (WB). SMG is eagerly anticipating the release of other blockbuster titles
including Mortal Kombat (WB, April 23), A Quiet Place II (Paramount, May 28), Cruella (Disney, May 28),
and Fast & Furious 9 (Universal, June 25). For showtimes, tickets, and food and beverage orders, please
download the SMG App on the Apple App or Google Play Stores. 

Studio Movie Grill was advised through its reorganization by the Law Offices of Frank J. Wright, PLLC, as
legal counsel, CR3 Partners, LLC, as bankruptcy advisor, EFA Partners LLC, as investment banker, and
Keen-Summit Capital Partners LLC, as lease restructuring advisor. The company’s prepetition secured
lenders (affiliates of Goldman Sachs and Crestline Investors, Inc.), who will provide debt financing and
acquire equity in SMG under its Plan of Reorganization upon emergence, were represented by Vinson &
Elkins LLP and Jones Day respectively, and FTI Consulting, Inc. served as financial advisor.

About Studio Movie Grill
Conceived in 1993, Studio Movie Grill (“SMG”) was the first exhibitor to modernize the traditional moviegoing
experience by combining first-run movies with full-service, in-theater dining. In 2019, 50 films put SMG
in the top 10 at the National Box Office. SMG placed 13th in Box Office Magazine’s Giants of the Industry in
2021. Honoring its commitment to Opening Hearts and Minds, One Story at a Time®, SMG’s legacy
outreach programs include Special Needs Screenings (programming returns April 24), and its loyalty
program, SMG Access®, which supports underserved community members. Conceived in 2018, SMG
Access®, in partnership with SMG Guests across the country, has earned over 44,000 free movies and
meals.

Leading provider of digital media services for film and television

Background: A seasoned management team who had previously worked with EFA while at their previous companies, formed a new film and television digital media services company and approached EFA to arrange financing for potential acquisition targets.

EFA Process: The company retained EFA to arrange acquisition financing.  EFA ran the process including creating presentation materials and then approaching several banks and specialty lenders.

Result: Three closings including two financings to support two acquisitions and financing to provide working capital.

start quoteWe selected EFA as our advisor due to their financial experience specific to the film and television services sector. The past year has been tremendous for us as we significantly grew our business with EFA arranging financing that allowed us to execute on our growth plans very quickly. end quote

John Suh
Co-Founder and Co-President of  Pixelogic

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                                                      Top ten film exhibitor in the U.S. based on screen count with 16 theaters across the Midwest

Background: Approached EFA to arrange financing, to refinance existing debt, and for growth of the business. Also engaged EFA to arrange a sale of the business.

EFA Process: EFA ran the process for all three assignments including preparing presentation materials and creating data rooms to manage the processes. For the debt process, approached several banks, specialty lenders, and REITs. For the sale process, approached strategic film exhibitors, private equity groups, and family offices.

Result: Three closings including a debt facility to refinance all existing senior debt, another debt facility to refinance existing debt as well as provide additional funds to acquire real estate at certain theaters, and then arranged the sale of operations to Kinepolis, a Belgium-based film exhibitor expanding its U.S. platform. 

start quoteThe EFA team has been our trusted financial advisor for the past several years. They have assisted us for a variety of assignments over the years including the refinancing of our debt, reviewing acquisition opportunities, and now the sale of our operations which, when closed, will provide an excellent outcome for our investors.end quote

Paul Glantz
Chairman of Emagine

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2nd largest U.S. operator of karting-based entertainment venues with 11 venues in the East and Midwest

Background: Approached EFA to arrange financing to refinance existing debt and for growth of the business. Also engaged EFA to arrange a sale of the business.

EFA Process: EFA ran the process for both assignments which included preparing presentation materials and creating data rooms to manage the processes. For the debt process, EFA approached several banks, specialty lenders, equipment financiers, and REITs. For the sale process, EFA approached strategic entertainment companies, private equity groups, and family offices.

Result: Three closings including a debt facility to refinance all existing senior debt and to provide growth capital which the company utilized to renovate and expand certain sites. Then arranged the sale of operations to K1 Speed, the largest U.S. operator of karting-based entertainment venues. K1 subsequently also acquired the real estate at one venue.

start quoteIt has been a pleasure working with Ralph Willis and the EFA team for the past several years. EFA was previously our advisor and successfully arranged our senior debt. Their understanding of the leisure sector and their industry relationships made them the logical choice to lead our sale effort which culminated in closing the sale to K1. end quote

Michael Greene
CFO and founding principal of Autobahn

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Television and motion picture post-production and digital content management services

Background: Company approached EFA seeking refinancing of its debt subsequent to other advisors attempting to do so with a combination of senior debt and equity.

EFA Process: After reviewing its capital structure EFA recommended a debt structure to fully refinance the company's debt.

Result: Closed senior debt facility that refinanced the company's existing debt, which was much more cost-effective than equity.

start quoteThe EFA team proposed a creative strategy to recapitalize Modern VideoFilm that met our needs in a way that was unique and different from what other financial advisory firms proposed to us. We appreciated their understanding of the entertainment industry and EFA's extensive financial relationships and we look forward to continuing our relationship. end quote

Moshe Barkat,
CEO and President of Modern VideoFilm

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                                                                              Operator of dine-in cinemas across the U.S.

Background: EFA has been engaged by Alamo corporate and several franchisees over several years for various assignments. These included  arranging construction financing for new venues and running the sale process for various theaters.

EFA Process: EFA ran the process for several assignments which included preparing presentation materials and creating data rooms to manage the processes. For the debt process, EFA approached several banks, specialty lenders, and equipment financiers. For the sale process, EFA approached strategic entertainment companies and private equity groups.

Result: Arranged construction and equipment financing for theaters in Texas, Colorado, and New York. In addition, served as sell-side advisor for two different franchisees and arranged the sale of seven theaters to two different film exhibitors.

start quoteEFA Partners and our team worked uniformly every step of the way to arrange a comprehensive financing solution that delivers greater financial flexibility to our two existing venues while also providing the necessary capital to build our newest Denver location. Brandt Gully, Ralph Willis and the EFA team have a deep understanding of the film exhibition industry and have proven to be reliable long-term partners as we continue pursuing our goals for sustained long-term growth.end quote

Dave Kennedy
Partner at Alamo Drafthouse

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 Waterpark in Houston owned by WP Ventures 

 

Background: Approached EFA to arrange financing to refinance existing debt and to finance a new attracion at the venue.

EFA Process: EFA ran the process which included preparing presentation materials and creating data rooms to manage the process. EFA approached several banks, specialty lenders, and REITs. 

Result: Arranged the financing with a bank at a very attractive rate that provided funding to refinance all exisiting senior debt and to provide funds for a new children's waterpark area.

start quoteIt was great working with Ralph Willis and the EFA team as they led our process to arrange financing. Their many years of experience in the leisure sector, plus their extensive relationships with financiers, allowed them to convey the highlights of our park and garnered interest from several financial groups. That provided for a competitive process to negotiate favorable financing terms to meet our financing needs. end quote

Terry Hlavinka
Partner at WP Ventures

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Television industry management group formed to manage and operate US TV stations

Background: Huntington approached EFA seeking capital for potential television station acquisitions.

EFA Process: EFA understood that private equity firms and lenders are seeking experienced management teams to back for acquisition opportunities in the television sector.

Result: EFA has introduced the company to several private equity firms as well as senior lenders, resulting in bids for groups of television stations and the company continues to seek other opportunities, with EFA’s assistance.

start quoteWe are acutely aware of the trends that are transforming the local broadcast TV business and have recently begun to explore opportunities to acquire stations. We are very excited about the prospects for the industry and the opportunities to capitalize upon. We are also pleased to have EFA Partners as our financial advisor as their many years of media industry experience and extensive financial relationships will help us accomplish our goal of building a best-in-class station group.

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David Tynan,
CEO of Huntington Broadcast Management Group

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