The owners of the Regal theaters known as Cineworld announced today that they have secured an additional $ 200 million in loans maturing in May 2024 from a group of its existing lenders. The company said the new loan facility does not have a material impact on its weighted average cost of debt.
With the reopening of theaters in its key US, UK and European markets, Cineworld has also agreed to amendments to the covenants of some of its existing borrowing facilities, including reducing the requirement minimum liquidity and relaxing the limits on the use of liquidity.
The UK-based company said that in addition to the $ 203 million CARES Act reimbursement it received in May 2021 and the $ 213 million convertible bond raised in March 2021. In addition to the strict liquidity control, giving them the possibility of fully resuming their activities as COVID -19 blockages are loosening in its markets.
“The additional liquidity announced today provides the Group with significant operating flexibility now that theaters have opened around the world,” said Mooky Greidinger, CEO of Cineworld in a statement. “We are monitoring the evolution of the virus and its potential impact on our business, but we are very excited about the potential of the unprecedented film roster in the second half of 2021 (mainly in the fourth quarter). We remain confident in the prospects for our business and continue to look forward to welcoming our customers back to the best place to watch a movie. “