Cineworld has secured $200m of incremental loans, maturing in May 2024, from a group of its existing lenders since the reopening of all of its cinemas in June 2021, the company announced today.
It is a move that aims to reassure investors and stakeholders following the disastrous pandemic period for the exhibitor. The cinema chain has also agreed covenant amendments on certain of its existing debt facilities, including reducing the minimum liquidity requirement and relaxing limitations on the use of cash.
“The additional liquidity announced today provides the Group with significant operating flexibility now that cinemas have opened across the world,” said Cineworld CEO Mooky Greidinger 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.”
The group believes that this further liquidity, in addition to the US CARES Act refund of $203m that was fully received in May 2021 and the $213m convertible bond raised in March 2021, together with the tight control over cash usage, will help Cineworld to bounce back. The statement notes that trading has already “improved” since cinemas reopened in April 2021.
Cineworld is the world’s second biggest exhibitor, owning Regal theatres in the US as well as Cineworld and Picturehouse Cinemas in the UK.
Its 2021 interim results are expected to be released on August 12, where a further update on trading will be provided.