Cineworld secures $200m loan boost as it gears up for bumper film slate
Cineworld today said it had secured $200m (£143m) in incremental loans to help shore up its finances as the chain prepared for a bumper schedule of film releases later this year.
The loan facility, which matures in May 2024, was secured from a group of Cineworld’s existing lenders. The company said it did not have a material impact on its weighted average cost of debt.
The firm has also agreed covenant amendments on some of its existing debt facilities, including reducing the minimum liquidity requirement and relaxing limitations on the use of cash.
It is the latest tranche of fundraising after Cineworld secured $203m through the US CARES Act in May and raised $213m though a convertible bond in March.
Cineworld said these measures, alongside tighter control over cash usage, would help bolster its finances as it recovers from the impact of repeated closures during lockdown.
The cinema chain said trading had continued to improve since sites reopened in April and it was now well-positioned to capitalise on pent-up demand.
Cineworld also pointed to an “exceptionally strong” slate of films in the second half of the year, which includes the delayed James Bond saga No Time to Die and Wes Anderson’s latest film The French Dispatch.
“The additional liquidity announced today provides the group with significant operating flexibility now that cinemas have opened across the world,” said chief executive Mooky Greidinger.
“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.”