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Cineworld, the owners of Regal theaters, announced Friday that it had secured $200 million of incremental loans maturing in May 2024 from a group of its existing lenders.
The company said the new debt facility does not have a material impact on its weighted average cost of debt.
Buoyed by cinemas reopening in its key markets of the U.S., U.K. and Europe, Cineworld has also agreed on covenant amendments on certain of its existing debt facilities, including reducing the minimum liquidity requirement and relaxing limitations on the use of cash.
The U.K.-based company said that on top of the CARES Act refund of $203M it received in May 2021 and the $213M convertible bond raised in March 2021, along with the tight control over cash, will give it the flexibility to resume operations fully as COVID-19 lockdowns ease in its markets.
“The additional liquidity announced today provides the Group with significant operating flexibility now that cinemas have opened across 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 slate of films 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.”
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