Fri 07/30/2021 04:09 AM
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Cinema chain Cineworld said it has secured $200 million of incremental loans, which will mature in May 2024, from a group of existing lenders. The group said it also has agreed covenant amendments on certain of its existing debt facilities, including a reduction of the minimum liquidity requirement and relaxing limitations on the use of cash.
The group said the new incremental loans will have no impact on its weighted average cost of debt.
Cineworld believes this additional liquidity in combination with the US CARES Act refund of $203 million
, which was received in full in May and the $213 million
convertible bond raised in March, together with the tight control over cash usage, will provide it with the financial and operational flexibility and resilience to execute on its business strategy as it resumes its operations.
The group said that trading has continued to improve since cinemas started reopening in April and it is now well-positioned to benefit from pent-up customer demand and the exceptionally strong film slate through the second half of 2021.
Cineworld is scheduled to release its 2021 interim results on Aug. 12, when a further update on trading will be provided.
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