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Cineworld Group Secures $200 Million of Additional Liquidity via Incremental Loans

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Following the opening of all their cinemas in June 2021, Regal Cinemas owner Cineworld has revealed that it has secured $200 million of incremental loans maturing in May 2024 from a group of its existing lenders.

“The New Debt Facility does not have a material impact on the group’s weighted average cost of debt,” the giant cinema chain said.

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The group 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, among other modifications which will further support the group as cinemas restart trading.

“Cineworld believes that this further liquidity, in addition to the U.S. CARES Act refund of $203 million that was fully received in May 2021 and the $213 million convertible bond raised in March 2021, together with the tight control over cash usage will provide the group with the financial and operational flexibility and resilience to execute on its business strategy as it resumes its operations,” Cineworld said in a statement.

The group noted that since cinemas started reopening in April 2021, trading has continued to improve, and they are now well-positioned to benefit from pent-up customer demand and the strong upcoming film slate through the second half of 2021.

The group will release its 2021 interim results on Aug. 12 2021 where a further update on trading will be provided.

Mooky Greidinger, CEO of Cineworld, said: “The additional liquidity announced today provides the group with significant operating flexibility now that cinemas have opened across the world. 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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