Cineworld Receives Additional $ 200 Million Loans

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22

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The owners of Regal cinemas, known as Cineworld, announced today that they have received additional loans of $ 200 million due in May 2024 from a group of existing lenders. The company said the new credit line has no significant impact on the weighted average cost of debt.

With the opening of cinemas in its key markets in the US, UK and Europe, Cineworld has also agreed on amendments to the covenants of some existing credit lines, including lowering minimum liquidity requirements and easing restrictions on the use of cash.

The British company said that in addition to the $ 203 million CARES reimbursement received in May 2021 and the $ 213 million convertible bonds raised in March 2021. Along with tight controls over cash that gives them the flexibility to resume operations in full amid COVID-19, Easing lockdowns in their markets.

“The additional liquidity announced today provides the Group with significant operational flexibility now that cinemas have opened around the world,” said Muki Gradinger, CEO of Cineworld. “We are monitoring the development of the virus and its potential impact on our business, but we are very excited about the potential for an unprecedented number of films in the second half of 2021 (mainly in the fourth quarter). We remain confident in the future of our business and look forward to welcoming our customers back to the best location to watch movies. ”

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