Cineworld Secures $ 200 Million Loans, Trade Bounces Back After Reopening



Joe Hoppe

Cineworld Group PLC said Friday it received additional loans of $ 200 million from a group of existing lenders, and trade has continued to improve since the theaters opened in April.

The cinema operator said loans maturing in May 2024 do not have a significant impact on its weighted average cost of debt. He also agreed on changes to the covenants on some existing lines of credit, including lowering minimum liquidity requirements and easing restrictions on the use of money, which will further support the company as cinemas begin trading.

The company said the additional liquidity will complement a $ 203 million US CARES refund in May, a $ 213 million convertible bond raised in March, and tight spending controls.

“The additional liquidity announced today provides the Group with significant operational flexibility now that cinemas have opened around the world,” said CEO Muki Gradinger.

The company said it is well positioned to capitalize on deferred consumer demand and an exceptionally strong film lineup in the second half of the year.

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