
- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
Movie theater chain Cinemark Holdings is set to raise $400 million in new senior secured notes via a private offering.
On Monday, Cinemark said it will use the proceeds of the proposed offering for general corporate purposes, to include repay borrowings under a restated senior secured credit facility belonging to a wholly-owned subsidiary, Cinemark USA. The proposed offering of $400 million in convertible senior notes, due 2025, will also be used to pay the cost of convertible note hedge transactions.
Cinemark is raising new debt as it completes a phased reopening of its movie theater circuit after the delay in the releases of Hollywood tentpole releases.
The third-largest domestic cinema chain on March 16 first announced temporary theater closures at all of its 345 sites amid the COVID-19 crisis. That was followed by rival cinemas across the U.S. also going dark as a health safety precaution.
Cinemark’s staggered reopening strategy has been tied to the availability of major studio movies, and in particular the planned release of Christopher Nolan’s Tenet by Warner Bros. on Sept. 3.
That should position Cinemark’s domestic circuit reopening for late August and early September. More specifically, one third of Cinemark domestic screens are expected to open on Aug. 21, another third will follow on Aug. 25 and the rest will reopen soon afterwards.
To reopen, Cinemark has introduced stringent health and safety measures amid the pandemic.
THR Newsletters
Sign up for THR news straight to your inbox every day